O industrial production fell 5% in October and hit the sixth consecutive month of losses so far this year, according to the Argentine Chamber of Midsize Companies (CAME).
According to the agency, the lack of market liquidity, the poor quality of the payment chain and the excessive rate of interest are the main problems faced by the sector. So far this year, the production of SMEs accumulated decrease of 1.9% in relation to the same period of 2017, assured the CAME.
The data come from the Monthly Industrial Survey conducted by the entity in about 300 companies from different branches and across the country. The items that had the least activity in October were "Calzado y marroquinera", "Rubber and plastic products", "Wood and furniture products" and "Paper, cardboard, publishing and printing".
This month, the "food industry" (0.1%) and "non-metallic minerals" grew slightly, while the manufacture of chemical items did not change. The positive fact is that the use of installed capacity in SMEs increased again slightly in October to 58.7%, although the sector is still very low.
The document prepared by CAME also details that the Industrial Production Index (IPIP) registered a value of 79.8 points in October. "The production trend does not seem to recover and will continue until at least the middle of next year," noted Pablo Bozzanno, executive director of the Argentine Chamber of Information, Electronics and Communications Industries (CIIECCA).
The manager also warned that "the installed capacity is less than 60%" and specifies that "companies are not currently firing, nor are they renewing the tariffs being lost."