SME industrial activity fell 19% year-on-year in May and, in this way, it accumulates a contraction of 19.1% during the first five months of the year. In this context of deterioration and fall in domestic consumption, businessmen demand specific measures from the Government for the sector.
The data comes from the SME Industrial Production Index (IPIP) prepared by the Argentine Confederation of Medium Enterprises (CAME) based on a survey that reached 414 companies throughout the country and, as the report highlighted, “they account for a weakening demand and a deterioration in the financial situation”.
The six manufacturing sectors included in the report showed sharp declines in the annual comparison, although the most affected were “Paper and Printing” (-45.8%) and “Chemicals and plastics” (-23.9%). Even “Textiles and clothing”, which was the only branch increasing until April, fell 4.3% annually in May.
The businessmen consulted “valued the greater stability in the price of inputs” during the month of May, but “showed their concern about the amounts being paid for energy and transportation consumption in a context of such low demand.”
CAME SME Industrial Production Index May 2024 06-23-24
CAME
CAME warned that 34.4% of the SME industries surveyed “were reducing operating expenses,” while another 19.9% ”reduced working hours to make up for the lack of sales.” “The biggest challenges identified by entrepreneurs are the lack of sales (45.1%) and the high costs of production and logistics (32.8%)”, he added.
Businessmen also demanded specific policies for SMEs from the Government. Asked about the most important measures they expect for the sector, they listed the reduction of taxes (33.9%), the stimulation of internal demand (14.7%) and the adaptation of labor relations (14.2%). .
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