Argentina’s Industrial Output Growth Continues for Second Month

Argentina’s industrial production rose by 7.1% in January 2025, marking two months of growth after 18 months of contraction. Major sectors showed moderated expansion, with basic metals still declining. Monthly adjustments revealed a 1.3% fall in production, reversing December’s gains.

In January 2025, Argentina experienced a remarkable increase in industrial production, which rose by 7.1% year-on-year. This marks the second consecutive month of growth following an extended 18-month period of contraction, although this growth is a deceleration from the 8.4% increase observed in December 2024.

Several key sectors have demonstrated robust expansion, albeit at a slower rate, including machinery and equipment (10.9%, down from 17.7%), manufacturing (25.1%, down from 33.4%), food and beverages (6.6%, down from 8.1%), and equipment, devices, and instruments (50.7%, down from 68.1%). Notably, the basic metals sector remains in decline, with a contraction rate of -7.9%.

Sectors such as oil refining, coke, and nuclear fuel recorded a growth of 6.4%, up from 4.1%, while wood, paper, publishing, and printing also experienced a modest increase of 1.1%, compared to 0.3% previously.

Despite the year-on-year growth, data indicated that industrial production fell by 1.3% on a seasonally adjusted monthly basis, reversing the previous month’s gain of 0.2%.

In summary, Argentina’s industrial output exhibited significant growth in January 2025, marking a notable recovery from an extended period of decline. While many sectors contributed positively to this growth, the basic metals sector continued to decline. However, the monthly analysis reveals a contraction in production, highlighting the complexities of the industrial landscape. Overall, this situation emphasizes the necessity for strategic measures to sustain and enhance industrial recovery in Argentina.

Original Source: www.tradingview.com