Another indicator that has ratified the crisis: the investment of SMEs, at the lowest in two years

Industrial SMEs confirmed that production in this sector is in critical condition and has drastically reduced their investment plans. According to a report from the Regional and Experimental Economic Center (CERX), the investment trend indicator (ITI) of small and medium-sized enterprises stood at 41.9%, which represents a drop of 10, 6% in July compared to the 61.6% recorded last January. This situation places it at its lowest level in 23 months.

"The perception between normal and bad of the current economic situation has lowered investment expectations, an effect that accentuates while the recovery does not come," he stressed. sample of CERX, which also specified that "to this it adds that the resources to invest are limited because the financial conditions are not the most favorable: the companies are subject to strong financial restrictions and the financing rates on the market are levels incompatible with the development of an investment project. "

The crisis scenario was confirmed by the Association of Industrialists of Buenos Aires (ADIBA) in its latest report on the situation. In May, "the Buenos Aires industry recorded through the FEBA industrial indicator experienced an average growth of 4% in the first five months of the year, down 0, 03% in May compared to the same period of 2017 ".

In this way, the industrial entity of Buenos Aires showed that the interruption of eleven months of consecutive growth. "Most industrial branches show a decreasing trend or less dynamism in their growth, while the inactive capacity of the business is increasing," he said.

According to the outlook, "the coming context offers a scenario of stagnation of the economy due to the steady deterioration in demand due to the decline in real wages and the adjustment in tax matter ". "In this context, business sales prospects for the second half of the year show 84% of entrepreneurs who do not expect improvements (46% who will not change and 38% who will decline ", indicates the report to which BAE Business adhered

Regarding prospects, ADIBA revealed that manufacturers for the coming months are expecting a" stagnant national economy caused mainly by by the local demand which continues to be depressed by the fall in real wages, which will be added last year, the fiscal adjustment resulted from the agreement with the IMF ". scenario, industrial activity will continue to face cost pressures and cope with increasingly small local markets, as export markets become more and more competitive. "

For the second half of the year the prospects s porteño industry project 84% of companies that do not expect sales increases (46% that will not change and 38% that will decline), and believe that "the difficult situation of the branches Intensive industrial activities intensify the deterioration in the sector's employment prospects: 51% of industries do not plan to increase their staff and 40% plan to reduce it. "