Argentina: Contraction in economic activity softens considerably in July
The monthly indicator for economic activity (EMAE, Estimador Mensual de Actividad Económica) contracted 2.7% in annual terms in July, a much softer drop than the revised 6.8% fall recorded in June (previously reported: -6.7% year-on-year). Although the reading marked the fourth consecutive month of year-on-year contraction, it also represented the first improvement in five months.
July’s contraction came on the back of significant annual declines in agricultural and industrial output, as well as severely restricted trade activity. However, the pace of contraction in the agricultural sector eased significantly, while less negative performances were also recorded in the industrial, trade, transport and communication sectors. Growth in activity in the construction and financial intermediation sectors, meanwhile, gained steam from June, while output in the fishing sector rebounded strongly.
A month-on-month comparison showed that economic activity jumped 1.4% in seasonally-adjusted terms in July, strongly contrasting a 1.3% contraction in June and marking the best result in over three years.
Finally, average economic activity decreased to 1.3% in July from 1.9% in June.