Argentina’s Industrial Output Shows Growth for Second Consecutive Month

Argentina’s industrial output surged 7.1% in January 2025, marking two months of growth after an 18-month decline. Key sectors such as machinery, manufacturing, and food and beverages grew at a slowed pace, while basic metals continued to contract. Monthly production fell 1.3% after a previous gain.

In January 2025, Argentina experienced a notable increase in industrial production, rising 7.1% year-on-year, marking the second consecutive month of growth following an 18-month decline. Although this growth rate decreased from December’s 8.4%, most key sectors exhibited positive momentum, albeit at a slower pace.

Notably, the machinery and equipment sector expanded by 10.9%, down from 17.7% in December, while manufacturing showed a 25.1% increase compared to 33.4% previously. The food and beverages sector grew by 6.6%, a slight decrease from 8.1%, and equipment, devices, and instruments surged by 50.7%, down from an impressive 68.1% in the prior month. The only sector facing ongoing contraction was basic metals, which fell by 7.9%, compared to a 4.9% decline in December.

Further recovery was observed in other areas as well, with oil refining, coke, and nuclear fuel increasing by 6.4%, up from 4.1%, along with wood, paper, publishing, and printing, which rose by 1.1% compared to last month’s 0.3% growth. However, on a seasonally adjusted monthly basis, industrial production declined by 1.3%, reversing the preceding month’s 0.2% increase.

In summary, Argentina’s industrial production saw a significant year-on-year increase of 7.1% in January 2025 after a prolonged period of contraction, although the growth rate has moderated from the previous month. While most sectors remain in expansion, basic metals continue to struggle. The decline in seasonally adjusted monthly production highlights the need for ongoing vigilance in economic recovery efforts.

Original Source: www.tradingview.com