Argentina: Economic activity growth slows in March but remains upbeat
Latest reading: The monthly indicator for economic activity (EMAE) grew 5.6% year on year in March (February: +6.0% yoy), the fifth straight month of expansion. Looking at the details of the release, construction, retail and financial services performed particularly well in March, with public administration, health and education performing poorly due to the government’s austerity drive. Moreover, the hospitality sector contracted for the third straight month, weighed on by the strong Argentine peso in real terms.
On a monthly basis, economic activity fell 1.8% in March (February: +0.7% mom). Meanwhile, the trend improved sizably, with the annual average variation of economic activity coming in at 1.1% in March, up from February’s flat reading.