In January, construction activity collapsed and there was a sharp decline in the sector

INDEC data for January confirms that the recession is worsening. The synthetic indicator of construction activities (ISAC) showed a decline of 21.7% compared to the same month in 2023 and a decrease of 10.2% compared to the previous month.

In the manufacturing production, down 12.4% compared to the same month in 2023 and a decrease of 1.3% compared to December.

In January 2024, Fourteen of the sixteen manufacturing industry sectors showed declines on an annual basis. Sorted according to their incidence at a general level, declines were recorded in “Food and beverages”, equal to 6.4%; “Substances and chemical products”, 12.1%; “Machinery and Equipment”, 33.5% and “Basic Metal Industries”, 19.3%;

In construction, consumption data show, compared to the same month of the previous year, drops of 61.9% on asphalt; 40.6% plaster; 38.6% in rods and steel for construction; 28.6% in manufactured concrete and 19.9% ​​in Portland cement.

In the construction sector, expectations are mostly negative. 52.5% of companies that predominantly carry out private work expect that the level of activity in the sector will not change in the next three months, while 41.6% estimate that it will decrease and 5.9% which will increase. Among the companies mainly dedicated to public works, 76.0% believe that activity will decrease in the period February-April 2024, while 22.1% believe that it will not change and 1.9% that it will increase.

Companies that carry out predominantly private work and that expect a decline in activity in the sector in the next three months indicate as the main causes the decline in economic activity (30.1%) and price instability (28.5%). Companies that are mainly dedicated to public works and that estimate a decline in activity in the sector in the next three months indicate as the main causes the decline in economic activity (28.0%) and delays in the payment chain (24.4% ).

Data already available for February shows that the decline in activity continues. According to ADEFA in the first two months Auto production fell 18%.