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Argentina’s Construction Sector Rallies While Manufacturing Shows Signs of Stalling

A month-to-month drop in manufacturing in June despite 9.3 percent year-on-year growth suggests a fragile rebound under rising import and financing pressures

Overview

  • Manufacturing production rose 9.3 percent in June compared with a year earlier but contracted 1.2 percent from May, marking its first monthly decline in three months
  • Of 16 manufacturing divisions tracked by Indec, only metal products shrank in June while ICT equipment, furniture and auto parts led annual growth
  • Construction output recorded a 13.9 percent year-on-year increase in June and a 0.9 percent uptick from May, marking its fifth straight annual gain
  • Construction employment climbed to 388,703 jobs in May, up 4.1 percent year-on-year, while permitted building area jumped 7.5 percent
  • Economists caution that rising imports, currency fluctuations and higher interest rates could undercut the fragile recovery in industry and construction