Production in the SME industry fell by 5.6% in November



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While the domestic market does not pick up, the production of industrial SMEs fell 5.6% in November compared to the same month last year, according to the Argentine Chamber of Small and Medium Enterprises (CAME). It is the sector's seventh consecutive month of decline.

In relation to last October, there was a 1.6% increase in the measurement with seasonality and for the eleven months of the year accumulated decrease of 2.2% in relation to the same period of 2017.

The figures correspond to the Monthly Industrial Survey conducted by CAME among 300 SME industries in the country. The sharpest falls in November were in the footwear and leather goods sectors (-18.2%),, metal products, machinery and equipment (-14.7%), wood and furniture products (-13.5%), paper, cardboard, publishing and printing (-5.8%) and chemicals (-4, 2%).

Production of Industrial SMEs

"The devaluation has only partially benefited us because we have many costs in dollars and we had to change the sales price several times over the year, "said Lewin, vice president of the Argentine Chamber of Machine Tools and Technologies for Production (CARMAHE), which could export more if the situation helps. Lewin makes it clear, getting new customers is a time-consuming task.

In October, 50.6% of the industries consulted ended with declines in annual production (53.9% in October) and 41.2% were discharged (36.7% in the previous month). "While most companies are still in decline, the proportion of growing businesses has improved again," CAME said in its report.

What was reduced in November, in turn, was the proportion of profitable industries: 32.6% versus 36.3% in October. "The combination of larger companies with a lower percentage without profitability, reflects a strategy is not sustainable, but necessary, which is to lower prices by selling at a loss, to obtain liquidity. But the proportion of industries with negative and zero profitability remains high, "agreed industrialists.

"The chain of payments went very, especially the biggest are those who delay payments and the amount of rejected checks is huge, "they added.

For some subsectors linked to housing, November was one of the worst months of the year, according to the CAME report. This is the case, for example, in the manufacture of benches for kitchens and furniture. The same for footwear and leather goods, sales and production were very low. In sectors such as clothing and some food, bankruptcies and possible closures increased this month.

A fact to be taken into account: according to how production orders arrive, only 8.2% of industries expect the economy to be reactivated in the first quarter of the year. Instead 55% indicate that it will be from the second half, that is, from July. 17.1%, meanwhile, is less optimistic, argues that in 2019 there will be no reactivation.

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