This was demonstrated by the first survey of the year carried out by the Argentine Industrial Union on the situation of its members the worst indicators since 2021, when the entity began carrying out its “Industrial Performance Monitor” (MDI).
The MDI, which measures production, sales, exports, employment and other variables, fell 6.9 points from last year and stood at 29.9 points. The indicator shows levels of contraction in activity from July 2022 and accumulates 7 consecutive readings below 50 points, practically two years of decline.
The lowest levels of the series are recorded in the variables of production (61% of companies say they produce less) and sales (69%), especially affecting SMEs, which represent 96% of the UIA sample of 700 companies. “This situation has led to more companies with difficulty making payments“, the organization explained in the report.
53% of the companies interviewed had difficulty making at least one of the payments (salaries, suppliers, financial commitments, public services, taxes). The number of companies that have failed to meet any of these payments (6.9%) has doubled since the last survey.
“Even in this picture there was a change of trend in the employment series, which so far has been the one that has shown the greatest stability. It was recorded on higher percentage of companies with a drop in employment and a notable worsening compared to previous findings.”
Specific, Employment fell in 21% of companies surveyed, the highest value in the series. For the second consecutive month, more companies are reducing their employment levels than increasing them.
“Businesses believe that their economic situation is worse than a year ago and expect the consequences of the decline in consumption, public works and the lower activity of other companies”, reads the report created on the basis of a survey conducted during first half of February.
But as with other surveys, when companies are asked what their expectations are for a year from today, About 50% said they expected the economic situation of their company, the sector and the country.
Source: Clarin
