The collapse of the production of the SME industry is accentuated

This is the second consecutive month in decline, where only 34% of businesses have increased and the use of installed capacity has fallen to 59.1%. Increasing costs, especially of inputs, services and financial services, are absorbed to a greater extent by business profitability. The highest exchange rate has favored exporting firms, but for those that do not export, it is harder to find markets.

The output of industrial SMEs decreased 3.9% in June compared to the same month last year. Declining demand in the domestic market combined with an international market that requires few Argentinean products, depressed industrial activity in June.

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

Data comes from CAME's monthly industrial survey among 300 SMEs in the country. The Industrial Production Index Pyme (IPIP) recorded a value of 75.8 points in June

Of the 11 sectors surveyed, 10 fell and only one progressed (still talking about the annual comparison). The only element that has increased is the development of "non-metallic mineral products", with an annual increase of 4.8%, but with difficulties of profitability. Most of these companies have their dollar-related entries and have received several adjustments up here this year without transferring much of these increases to their selling prices.

Instead, they had annual falls: and plastic "(-9.9%)," Transportation Equipment "(-7.8%)," Electromechanical Products and IT (-8.7% ), "Shoes and leather goods" (-5.5%)), "Food and beverages" (-5.2%), "Wood and furniture" (-4.1%), "Textiles and clothing" (-3 , 0%), "Metallic products, machinery and equipment" (-1.4%), "Paper, cardboard, publishing and printing" (-1.5%) and "Chemical products" (-2.4%).

The increase in fuels, in interest rates and services generally affected the profitability of the company. Another factor of impact is the increase in inputs and machinery related to the dollar, which has increased costs.