Overview

• Argentina’s factory output slid 2.1% from March to June, marking its fourth straight monthly drop and pulling production back to September 2007 levels.
• Capacity utilization remained below 60% in June as 12 of 16 manufacturing sectors, notably garments, textiles and machinery, registered contractions.
• Analysts point to April’s shift to a floating-rate exchange regime and higher interest rates for raising input costs and eroding competitiveness.
• Automotive production plunged 16.5% year-on-year and 13.4% month-on-month in July, leading ADEFA to call for tax relief and targeted incentives.
• Mexico’s manufacturing output rose 1.6% in June but employment fell 0.2% month-on-month and is down 1.4% in the first half of 2025, underscoring regional labor fragility.