Industrial production of SMEs fell 3.9% from one year to the next in June

Production of industrial SMEs fell 3.9% from one year to the next in June and accumulated the second month of decline after increasing by 10 months, according to a report by the Argentine Confederation medium-sized enterprises (Came).
Only 34% of businesses increased and the use of installed capacity fell to 59.1%, according to the study.
"Increases in costs, especially inputs, services and financial services, are more absorbed by business profitability, while the higher exchange rate has favored exporting firms, but those that do not. do not export, it's harder to find markets, "said Came.
He also pointed out that the decline in domestic market demand combined with an international market that requires few Argentine products, shocked industrial activity in June.
"Compared to the month of May, there was a decline of 8.4% measure with seasonality), while in the six months of the year accumulates a 1.2% growth over the same period of 2017.
Of the 11 sectors studied, 10 fell and only 1 progressed (still speaking of the annual comparison) .The only element in increase was the development of "non-metallic mineral products", with an annual increase of 4.8%, although with difficulties in profitability, the report showed
In this sense, he argued that "the majority of these companies have their inputs related to the dollar and have received several adjustments so far this year without transferring much of these increases in their selling prices. "
He pointed out that the increase in fuels, interest rates and Services in general have affected business profitability.
"Year-on-year growth has only reached 34% of industries this month (in March, 48.7% of SMEs had grown, 44.3% in April and 39, 4% in May), "he added.
Due to cost increases, declining sales and greater difficulties in transferring these price increases, the proportion of industries with positive profitability was reduced to only 35.4% (compared to 54% in March , 46.7% in April and 39.4% in May).
Finally, Came noted that the industry is working with a high idle capacity and that the use of installed capacity further declined in June, to only 59.1% (vs. 64.3% in March, 62% in April and 60.5% in May).