The industry dropped 11.5% in September and recorded the worst performance in over 9 years

The manufacturing industry recorded a decline of 11.5% in September and a cumulative decline for five consecutive months. This is not only the biggest drop in the year that coincides with the worst exchange rate crisis of 2018 with a dollar exceeding 10 pesos and record inflation, but it is the worst result since May 2009.

its share, over the nine months accumulated in 2018, the indicator showed a decline in manufacturing activity of 2.1% compared to the same period of the previous year, which suggests that it ended above 3% in order to:

"It is very likely that the industry will fall more than the overall economy, mainly because 39; it is linked to the internal market being shattered. " October is undoubtedly an equally bad month and 2019 will also be a very difficult year for the industry, "said economist Martn Alfie of the Radar consulting firm.

Four of the twelve manufacturing sectors surveyed recorded setbacks over 20% and three others above 10%, the worst results were still observed in the textile industry (-24.6%), as the contraction in domestic demand seriously affected the quantity of orders, followed by publishing and printing (-21.6%), metal mechanics excluded from the automobile (-20.5%) and rubber and plastic products (-20.4%) [19659004] The automotive industry has shown that it was continuing with a severe crisis marking a drop of 15.7%, while the automotive sector the tobacco recorded a similar decrease of 15.8% and the refining of the oil has regained a double digit decline (-11%).

The sect ur of the automobile saw its worst time and fear the closure of factories

The base metals industry, with growth of 2.7%, mainly related to the aluminum export sector, recorded a positive result. Steel products, on the other hand, were lower for the construction, automotive and white goods sectors, but they improved their performance in oil and gas related orders thanks to the dynamism of Vaca Muerta.

To these results, the qualitative industrial survey did not present the best expectations on the part of companies. 60.7% expect a weaker internal demand in the last quarter of the year, compared with only 8.8% who maintain an optimistic view and that is why the majority (41.8% ) provides that the use of a lower percentage of installed capacity.

As in recent months, business forecasts mainly forecast a reduction in the workforce (29.8%), while a minority sector expects an increase in its facilities (5.9%). These figures are in-depth in relation to the number of hours worked, which means that 39.5% of employers plan to reduce them by not needing redundancies to reduce them.

As regards foreign trade, the survey faithfully reflects the reversal. the Argentine trade balance that could be reversed last month – but not in the cumulative annual accumulated – through a collapse of imports and not a rise in external sales. 43.3% of companies expect a decrease in their imports of inputs compared to the 28.6% increase expected from their exports.