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Argentina’s Industry Drops 6% in November as SMEs Warn of ‘Critical’ Strain

Private forecasts point to only 2–3% growth in 2026 despite far stronger claims from the government.

Overview

  • Preliminary UIA data show industrial activity fell 6% year over year and 1% from October, with November having two fewer working days than a year earlier and four fewer than in October.
  • Construction led the decline as cement dispatches fell 7.7% month over month and the Índice Construya dropped 7.1%, leaving the sector more than 20% below 2022–2023 levels.
  • Automotive output sank 22% in November, reflecting fewer production days and weaker domestic demand.
  • Complementary indicators point mostly down, including beverages at -6.9% and industrial power use at -5.8%, with only slight gains in machinery registrations (+0.9%) and steel (+0.4%); aggregate output sits near late‑2024 levels and roughly 10% below 2022–2023.
  • SMEs report a severe squeeze, with Q3 production down 4.1% and employment down 4.6% alongside widespread cost pressures, import competition, and payment delays, as analysts project only a modest 2026 rebound versus the government’s 4–8% claim.