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Montevideo, June 16th 2019 - 07:00 UTC

Argentina's industrial output down 8.8%; car production falls 35.3% in twelve months

Thursday, June 6th 2019 - 08:37 UTC
Full article 2 comments
According to ADEFA May 2019 numbers mean that compared to a year ago, 16.555 units less were produced, making it an annual retraction of 35.3%. According to ADEFA May 2019 numbers mean that compared to a year ago, 16.555 units less were produced, making it an annual retraction of 35.3%.

Argentina’s industrial output fell 8.8% in April compared with the same month a year ago, official data showed on Wednesday, marking 12 straight months of production losses as the economy struggles with recession and rapidly-rising consumer prices.

Argentina’s inflation is seen quickening by an eye-watering 40.3% in full-year 2019 while the economy shrinks 1.5%, according to a central bank poll that was released on Tuesday and showed more pessimist forecasts than a month earlier. 

More specifically auto production during May dropped 0.5% compared to April accumulating a loss of 35.3% year to year., according to the Association of Auto Manufacturers, ADEFA.

In effect during the 21 working days of May production reached 30.289 vehicles, a slight drop from April, even when April output had increased 3.7% over March. Anyhow according to ADEFA May 2019 numbers mean that compared to a year ago, 16.555 units less were produced, making it an annual retraction of 35.3%.

Regarding exports sales reached 21.834 units, 6.3% higher than in April and 1.9% over the same month a year ago. However overall in the first five months of the year 90.285 cars were sold overseas, which is 8,5% less than the same period in 2018,.

ADEFA president Luis Fernando Pelaez Gamboa said the industry was hopeful that the “June Plan 0 km” launched by the government could help prop sales, but it was still too early to assess its impact.

Categories: Economy, Investments, Argentina.

Top Comments

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  • Zaphod Beeblebrox

    Enrique,

    “Let's see now the flurry of comments from cheerleaders such as Zaphod, questioning the numbers, the source of the numbers, their interpretation”

    You are (deliberately?) missing the point that I have tried to make several times. I don't question the numbers, the source of the numbers or their interpretation. I simply point out that this is but one of several economic indicators and some of those indicators have got worse, stayed about the same or improved under Macri. If you only focus on the bad (or good) numbers you will get a distorted view of reality. I am not an economist, but I expect that these indicators will change in different rates and some will follow on from others. I have no idea whether the overall trend is getting better or worse, but the experts (who are paid to understand these things) seem to prefer Macri to CFK and the population who have first hand experience of life under both seem to be undecided (the polls are close).

    So, picking up on a news story about a bad indicator and saying that this proves your argument that Macri has destroyed the economy is as invalid as me saying the improved balance of trade proves the opposite. You cannot simply cherry-pick the data that supports your beliefs. You should look at all of the data and make a balanced judgement. I have repeatedly presented sources of data that show that not everything is as bad as you claim and yet you still jump on stories like this as justification for your beliefs.

    You MAY be correct about the end, but your process of ignoring ignoring inconvenient data is NOT the correct route to the truth.

    ”...or just arguing that, during CFK, it was worse (it wasn't).”

    Like I've said before, the data does not support that statement. Some things are worse, some things are better. The quality of data is certainly better given the way CFK fiddled the results to hide how bad the exchange rate, inflation etc. was.

    Posted 3 days ago 0
  • Enrique Massot

    Let's see now the flurry of comments from cheerleaders such as Zaphod, questioning the numbers, the source of the numbers, their interpretation, or just arguing that, during CFK, it was worse (it wasn't).

    And what does the government do to revert the downward trend? You guessed: implement a good, old populist formula and subsidize car sales. (Obviously Macri seeks to help some car makers or dealerships -- otherwise he would have chosen to subsidize the price of bread and milk).

    Too little, too late.

    Jun 06th, 2019 - 06:53 pm -1
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