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UIA Survey Finds 14th Straight Contraction in Argentina’s Industry, MDI at 43.8

A collapse in domestic demand is driving the downturn, despite a recent improvement in business sentiment.

Overview

  • The industrial monitor fell 5.2% year over year in October and dropped 1.3 points from July, remaining below the expansion threshold for a 14th consecutive survey.
  • Output declined about 2% in October, leaving manufacturing roughly 10 points below 2022–2023 levels, while 47.4% of firms reported lower domestic sales.
  • Nearly half of companies (47.5%) struggled to meet at least one key payment, with the highest stress in taxes (29.3%) and suppliers (26.7%), and 8.2% reporting arrears on all.
  • Employment pressure intensified as 21% of firms cut headcount, 23.5% reduced shifts, and 7.7% implemented suspensions.
  • Companies point to weak internal demand as the main drag (about 40–41%), followed by higher costs (19.3%), with textiles, common metals, and clothing/leather/footwear among the weakest; even so, 60.4% expect their company to improve over the next year amid calmer financing conditions and lower rates.