Factory production marked a growth of 4.8% year-on-year in August

Tuesday, September 20, 2022 | 3:17 p.m.

Factory production grew 4.8% year-on-year in August, according to the advanced index of industrial activity prepared by the Center for Production Studies (CEP XXI) of the Ministry of Industry and Productive Development.

“Both the sectors of the economy and the Government are working every day to sustain the level of activity and employment as we put the macroeconomic variables in order,” said the Secretary of Industry and Productive Development, José Ignacio De Mendiguren.

In a statement, the official indicated that “we are not unaware of the difficulties we face at this juncture, but we are very clear about the direction of promoting the sectors that produce and add value. All policies are geared towards that.”

The index, prepared based on data at the Cammesa wholesale level, showed that in August there was a higher electricity consumption in plants of the most relevant industries.

On the other hand, production grew 11.1% in August when compared to the same month in 2019, the study center indicated.

The data shows a continuity with the upward trend that the Indec registered in industrial activity in July, when it marked an improvement of 5.1% year-on-year and 10.7% compared to the same month of 2019, reaching the highest production for that month since at least 2016.

At branch level, the activity in the automotive industry in August was the highest since 2013, with a historical record in the production of utility vehicles.

According to Adefa data, 54,057 units were produced, the highest volume recorded for that month since 2013.

In July, construction registered the second highest level since there is a record for that month, only behind 2015, growing 5.2% year-on-year and 9.5% compared to July 2019.

In this way, in the first half of the year, economic activity showed an increase of 6.3% year-on-year and 2.8% compared to the same period of 2019, according to the Monthly Estimator of Economic Activity (EMAE).

Since December 2019, a total of 612 thousand registered jobs have been created (+5.1%) and only from May to June, 63,100 jobs were created, of which approximately half belong to jobs generated by the private sector.

In this context, it was highlighted that in July Argentina was positioned as the second country with the highest industrial growth within a sample of 12 countries: the 10.7% rise registered in July with respect to pre-pandemic levels exceeded the records of countries such as the United States (+3.5%), Mexico (+2.9%) and India (+1.1%), and remained behind China (+15.7%).

The rest of the countries in the sample, including several on the European continent, recorded falls compared to 2019: France (-13.5%), Germany (-12.5%), Italy (-8.5%) , Japan (-8.4%), Spain (-6.5%), Chile (-2.3%) and Brazil (-1.3%).

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