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

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 finances, are more absorbed by firm profitability, while the higher exchange rate has favored exporting firms, but those that do not. do not export, it is harder to find markets, "explained CAME.

Similarly, he pointed out that the drop in domestic demand combined with an international market that requires few Argentinian products, has undermined to industrial activity in June

"compared to May, there was a decline of 8.4%. measure with seasonality), while in the six months of the year accumulates a growth of 1.2% compared to the same period of 2017. "

Of the 11 sectors studied, 10 fell and only 1 progressed (still speaking of the annual comparison) .The only item in increase was the development of "non-metallic mineral products", with an annual increase of 4.8%, although with difficulties of profitability, the report showed

In this sense, he argued that "the majority of these firms have their dollar-related inflows and have received several adjustments up to this year without transferring many of these increases to their sale price. "

On the other hand, he explained that they had annual declines:" Rubber and plastic products "(-9.9%)," Transportation Equipment "( -7.8%), "Electromechanical products and IT (-8.7%)," Footwear and leather goods "(-5.5%), "Food and beverages" (-5.2%), "Wood and furniture" (-4.1%), "Textiles and clothing" (-3.0%), "Metal products, machinery and equipment" (-1 , 4%), "Paper, cardboard, publishing and printing" (-1.5%) and "Chemicals" (-2.4%).

Specified that the increase in fuels, in interest rates and services have generally affected the business capacity re.

"Growth from one year to the next reached only 34% of industries this month (48.7% of SMEs had increased in March, 44.3% in April and 39.4% in May), "he added.

Due to cost increases, declining sales levels and greater difficulties in transferring these increases to prices, the proportion of profit-making industries was reduced to only 35.4% ( against 54% in March, 46.7% in April and 39.4% in May).

On average, the companies consulted indicated that they only transferred 49% of their cost increases to their sales. The difference has been absorbed by their profitability, although they predict that when market conditions improve, they will have to open up these prices.

Finally, CAME reported that the industry is working with a high idle capacity and that the use of installed capacity has further decreased in June, to only 59.1% (vs. 64.3%). % in March, 62% in April and 60.5% in May.)

"Financial and currency uncertainty and all higher interest rates affect investment plans companies, for the next six months, only 23% of industrial SMEs plan to make new investments, 17% evaluate it and 55% have already decided that this year they will not make new moves in this direction ", he concluded.