Industry continues to plummet as sector drops again in July

The Argentine manufacturing sector continued its decline in July, according to research firm Orlando Ferreres & Asociados. Industrial activity dropped by 0.4%, indicating no end in sight for the downward trend. Over the first seven months of the year, activity is now 2% below the same period last year, as reported by the Argentine Industrial Union.

The UIA estimated a 0.6% monthly decline and a 1.4% year-over-year increase in July, attributing it to a low baseline. The sector's cumulative decline in 2026 stands at 2% compared to the same period in 2022 and 2023, under the previous administration of President Alberto Fernández. The steepest monthly decline was observed in automotive production, with a 6.8% drop.

Exports to Brazil also suffered, with a notable decrease in shipments to the country's largest trading partner, down by 12%. Experts are concerned that the industry's recovery may depend on a boosting retail consumption, driven by an uptick in household income. However, recent official data suggests wages for private sector employees have not yet returned to pre-Milei levels, with registered workers earning 3.6% less in June than in November 2023.

Since Milei took office, nearly 1,700 industrial companies have closed, placing the manufacturing sector as the sixth-largest among those that have closed, behind other sectors such as professional, scientific, and technical services. Over 39,000 jobs have been lost in the industrial sector alone.