Overview
- The UIA's Centro de Estudios estimated late July that industrial output fell 1.8% year‑on‑year in June and declined 0.2% from May in the seasonally adjusted series.
- The first half of 2026 closed about 3% below the same period in 2025 and roughly 10% under 2022 activity, leaving most factories running with low capacity use.
- Key sectors dragged the headline number down: construction saw cement dispatches fall 2.7% month‑to‑month, metalworking and steel output declined, and auto production remained about 18% below last year.
- Some pockets offered support as electricity use by large industrial users rose, machinery patent registrations jumped and exports to Brazil increased by about 15%, cushioning but not reversing the downturn.
- Supply problems and weak domestic demand are central causes: Fundación FIEL reported gas interruptions and higher fuel costs forced cutbacks in some plants, while surveys show clothing and durables firms face falling sales and squeezed profitability.