The industry, in trouble: the factories of SMEs have already been seven months with a drop in activity



[ad_1]

The industrial production of SMEs fell 5.6% in November last month, compared to the same month last year, so it already accumulates seven consecutive months in retreat.

According to a report prepared by the Argentine Confederation of Medium-sized Enterprises (CAME), small and medium-sized industries are already running at 56.5% of its total capacity. The study shows that only a third of employers work profitably, although 41.2% of the surveyed establishments have shown a slight growth.

More than half of respondents believe that only in the second half of next year will it begin to reactivate the country's economy. In the comparison with October, the activity of the sector registered an increase of 1.6%, although in the 11 months that passed in 2018 accumulated a decrease of 2.2% in relation to the same period of 2017.

The most pronounced losses this month were in Footwear and leather goods (-18.2%), Metal products, machinery and equipment (-14.7%), Wood and wood products (-13.5%), Paper, cardboard, publishing and printing (-5.8%).

For some subsectors linked to housing, such as SMEs dedicated to the manufacture of kitchen and furniture benches, November was one of the worst months of the year. A fact to keep in mind: according to the production orders, only 8.2% of industries expect the economy to be reactivated in the first quarter of the year.

In addition, the use of installed capacity fell again to 56.5%, which for CAME represents "very low levels, but consistent with the systematic and deep fall of activity."

According to CAME, information "worrying is the low level of investment plans for 2019: 49% of the companies surveyed say they do not intend to investand only 23% yes. The rest are evaluating this, "he explained.

"The devaluation only partially benefited us because we have a lot of costs in dollars and we had to change the sale price several times over the year," said Luis Lewin, vice president of the Argentine Chamber of Machine Tools and Technologies for Production (Carmahe) .

[ad_2]

Source link