Argentina: Industrial production maintains momentum in July
September 1, 2017
In July, industrial production jumped 5.9% over the same month last year, according to the latest data released by the National Statistical Institute (INDEC). The reading followed the 6.6% year-on-year growth recorded in June, which was the highest result since July 2011. July’s reading marked the third straight month of increases in industrial output.
According to INDEC, industrial production’s growth momentum in July was sustained on the back of strong results in the tobacco, metalworking (excluding automobiles), non-metallic mineral products and rubber and plastic products industries. On the other hand, decreases were recorded in the oil refining, textile, and chemical industries. The 15.8% expansion of the metalworking (excluding automobiles) industry—the third-largest industry in Argentina—was supported by growth in construction activity, which benefitted from continuity in the provision of public work permits. The strong 15.2% growth of the non-metallic mineral products industry, which is much smaller by comparison, was also driven by construction activity, particularly in demand for cement and other construction materials. The decreased momentum in industrial output growth in July was led by the chemical industry, which sold fewer chemicals for the production of synthetic and artificial fibers, recording a 5.4% contraction in output.
The accumulated average annual variation in industrial production over the first seven months of the year was 0.8% in July, a considerably better result than the flat reading recorded in the first six months of the year.
Author: Edward Gardner, Economist