Argentina: Pace of contraction in industrial production eases in June
July 31, 2014
In June, industrial production fell 0.3% over the same month last year, which was well above the 4.9% drop recorded in May. The decrease overshot the 3.6% contraction that market analysts had expected and marked the lowest pace of decline since September 2013. June’s fall mainly reflected a sharp decline in the automotive industry. Activity in the auto manufacturing sector remains in the doldrums due to lower domestic sales and fewer shipments to Brazil—the biggest buyer of Argentinian cars.
On a sequential basis, industrial production expanded at the fastest pace in 15 months, increasing 2.1% in seasonally-adjusted terms, which contrasted the 0.8% decrease tallied in May. Annual average variation in industrial production deteriorated further in June, falling from minus 1.9% in May to June’s minus 2.2%, which marked the lowest reading since February 2003.