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Argentina’s Factories Contract as Mexico’s Output Rises but Jobs Decline

High interest rates keep investment on hold, revealing fragile momentum behind upbeat annual figures.

Overview

  • Argentina’s manufacturing index fell 2.1% from March to June, marking four straight monthly declines and returning output to 2007‑era levels, according to CICEc based on INDEC and FIEL data.
  • Twelve of 16 industrial divisions contracted in that span, with food and beverages weighing on the aggregate and factory capacity use staying below 60% for a seventh consecutive month.
  • July showed further strain: auto production dropped to 37,112 units (−16.5% year over year; −13.4% month over month) as a stronger peso versus the real hurt exports and automakers sought tax relief.
  • Construction indicators weakened too, with July cement dispatches down 2.8% annually and the Construya index off 0.47% monthly, while business groups warn near‑70% interest rates are choking financing.
  • In Mexico, June manufacturing output rose 1.6% month over month and 2.3% year over year, yet payrolls fell 0.2% on the month and 2% on the year, extending a 28‑month run of annual job losses concentrated in textiles; authorities moved to end IMMEX benefits for Asian footwear, imposing a 25% tariff.