Overview

• INDEC reported industrial capacity use at 58.2% in July, the first year‑on‑year decline since November 2024 and the eighth consecutive month below 60%.
• The Industrial Production Index fell 2.3% from June and 1.1% year over year, underscoring renewed weakness in manufacturing.
• Chemicals and automotive posted the steepest annual setbacks, with utilization down to 59.9% from 65.7% and to 44.1% from 52.2%, linked to lower output of soaps, basic chemicals and fewer vehicles.
• Only five of twelve blocks operated above the overall average, led by oil refining at 81.7%, food and beverages at 65.2%, basic metals at 63.9% and paper and cardboard at 60.6%.
• Coverage attributes the setback to financial volatility, very high interest rates and a pullback in credit, with some analysts expecting deeper effects to show up in August data.