MercoPress. South Atlantic News Agency

Argentine manufacturing and construction declines during October

The manufacturing decline was led by sharp falls in the auto industry, textiles, metals, rubber and plastic production, and chemicals

Manufacturing in Argentina fell 6.8% in October year on year, while construction declined 3.7%, and in the first ten months of this year 2.5% and 4.9% respectively according to the Indec statistics bureau report. Firms were hit hard by a contraction in economic activity and the devaluation of the Peso against the US dollar.

The manufacturing decline was led by sharp falls in the auto industry (minus 10.8%), textiles (minus 23.4%), metals (minus 21.3%), rubber and plastic production.(minus 17.2%), and chemicals (minus 6.5%).

An Indec survey of business prospects indicates that 59% anticipate a reduction of domestic demand in the next three months to February; 31.2% a stable market and 9.8% are looking forward to a rebound. Regarding companies involved in exports 50.9% anticipate three flat months, 27.5% an increase and 21.6% a decline.

As to construction in the private sector, 55.1% companies surveyed by Indec anticipate a drop in activities, while 4.1% an increase and 40,8% no change.

Regarding construction in the public sector, 71.8% anticipate a fall in activity in the next three months to February, while 4.7% expect an increase and 23.5% no changes.

The International Monetary Fund (IMF) predicted recently that Argentina's economy will shrink by 2.6% this year, with a further 1.6% contracted seen for 2019.