Industrial production fell 5 percent in October, thus reaching the sixth consecutive month of decline this year, according to a survey by the Argentine Chamber of Commerce (Came).
According to the agency, the lack of liquidity in the market, the low quality of the payment chain and excessive interest rates are the main problems facing the sector. So far this year, the production of small and medium-sized enterprises accumulates a 1.9% drop compared to the same period of 2017, said Dojde.
The data come from the Monthly Industrial Survey that conducted the entity in about 300 companies from different branches and across the country. The smallest activity in October was footwear and leather goods (15%), rubber and plastic products (10.8%), wood and furniture products (10.4%) and paper, cardboard, printing and printing (8.5% ).
In this month, "Food Industry" (0.1%) and "Non-metallic Minerals" registered slight growth, while the production of chemical products did not change. The positive fact is that the use of installed capacities in SMEs increased again in October to 58.7%, although the sector is still very low.
The document, prepared by Came, also details that the Industrial Production Index of Small and Medium Enterprises (IPIP) registered a value of 79.8 points in October. "The production trend does not seem to come back and will continue until at least the middle of next year," said Pablo Bosanno, executive director of the Center for Information, Electronics and Communication Industries at the Center of Argentina.
The director also warned that the use of "installed capacity is less than 60%" and said "companies are not currently discharged, nor are they recovering costs that are lost."