Argentina: Industrial production rebounds vigorously in May
June 30, 2017
In May, industrial production jumped 2.7% over the same month last year, according to the latest data released by the National Statistical Institute (INDEC). The reading strongly contrasted the 2.6% fall observed in the previous month and marked the highest reading in almost two years. Nevertheless, it undershot the 3.5% expansion that market analysts had expected. May’s expansion put an end to fifteen consecutive monthly declines in industrial production.
According to INDEC, May’s healthy growth mainly came on the back of expansions in the food, automobile, chemical, metallurgic and basic metals industries and higher production of non-metallic minerals and rubber and plastic. On the other hand, the textile, oil and paper industries declined in annual terms. The expansion in the food industry was driven by a double-digit jump in beef production, which largely benefited from strong external demand. Both the metallurgic and non-metallic minerals industries benefited from expanding activity, while rising agricultural production drove the production of agricultural machinery, further supporting the metallurgic industry. Lastly, the automobile industry grew by almost a fifth compared to the same month of last year, mainly thanks to a sharp increase in the production of light commercial vehicles.
The accumulative average variation in industrial production in the first five months of the year was minus 1.4%, a considerably smaller decline than the 2.5% accumulative average contraction recorded in the first four months of the year.