Overview
- The industry’s installed capacity use dropped 6% year over year to one of its lowest historical readings, comparable to the 2020 pandemic trough.
- Most provinces contracted, led by Buenos Aires (-7.7%), with declines in Mendoza (-4.4%), Córdoba (-3.7%) and Santa Fe (-2.2%), while Entre Ríos edged up 0.5%.
- Sectoral results were broadly weak, with Foundry (-12.7%), Electrical Equipment (-8.6%), Capital Goods (-3.9%), and Auto Parts (-2.5%) down as only Bodies and Trailers grew 2.6%.
- Trade pressures intensified as September metalworking imports rose to $2.717 billion (+18.7% in value and +42.6% in volume year over year) while exports slid to $416 million (-5.7%).
- Labor conditions deteriorated with employment down 2.9% year over year in October and surveys showing 67.4% of firms expect flat or lower output and 83.3% plan no hiring or potential cuts.