Argentina: Economic activity expands at over two-year high in July
September 27, 2017
In July, the monthly indicator for economic activity (EMAE, Estimador Mensual de Actividad Económica) rose 4.9% year-on-year, the fastest rate since June 2015 and above June’s already-strong 4.2% expansion. June’s reading was the fifth consecutive month of year-on-year gains in the index, boosting President Mauricio Macri’s market-friendly policies just a month before the crucial mid-term legislative elections in October.
July’s surge reflects strong growth in manufacturing and construction, the latter of which expanded at a double-digit rate for the second consecutive month. In contrast, electricity, gas and water production swung to a contraction and mining and quarrying logged its 20th consecutive decline.
A seasonally-adjusted month-on-month comparison showed that economic activity expanded 0.7% in July, which came in above the 0.3% increase observed in June. On average, economic activity increased 0.2% in the 12 months up to July, which is an improvement from the 0.6% drop in the 12 months up to June.