Overview

• The UIA’s Monitor of Industrial Performance registered 45.3 points in July, marking a thirteenth consecutive survey in contraction.
• Output fell at 36.3% of firms and domestic sales declined at 43.5%, with sectors such as footwear, textiles, and printing among the hardest hit.
• Industrial labor conditions worsened as 24.4% of companies reduced staffing and layoffs reached 19.4%, surpassing shift reductions for the first time in four surveys.
• Financing strains deepened as 39.6% of firms sought bank credit and 42.8% failed to obtain the required amount, with restrictions more acute for SMEs due to high rates and macro uncertainty.
• Cost and outlook pressures persisted as labor costs led increases (42.1%), optimism eased to 48.6% expecting improvement in a year, and exports remained net negative with 30.5% reporting declines versus 16.6% increases.