Argentina: Contraction in industrial production sharpens in December
February 6, 2019
Industrial production plunged a multi-year low of 14.7% over the same month of last year in December, according to data released by the National Statistical Institute (INDEC) on 5 February, marking a steeper fall than November’s 13.9% year-on-year decline.
December’s result reflected contractions in all components of the index. The categories of textile; machinery and equipment; other equipment, instruments and apparatus; other transport equipment; and furniture and mattresses, and other manufacturing industries recorded the biggest drops. The decline in production of other transport equipment was especially sharp. A marked fall in domestic demand was again behind the contraction in industrial output.
On 5 February, the Statistical Institute revised its methodology of calculating industrial production. The new methodology, among other innovations, includes results from previously unrecorded sectors.
Argentina Industrial Production Forecast
Panelists participating in the LatinFocus Consensus Forecast expect that industrial production will contract 0.5% in 2019, which is down 0.7 percentage points from last month’s forecast. For 2020, the panel expects industrial output to rise 2.1%.