Last February the construction activity index (ISAC) showed this. a drop of 24.6% compared to the same month in 2023, according to INDEC data. This is the worst outcome for the sector since the paralysis that occurred during the pandemicwhere it lost 76% in the interannual measurement.
The sector also had a negative month, albeit with a more limited loss of only 9.9% compared to the same month last year. By November 2023 it had fallen by 12.9%.
The two sectors are among the most affected by the recession affecting the economy and which could result in a 4% decline in gross domestic product for the full year, according to private forecasts.
In February construction lost 2.6% compared to January and industry fell by 0.7% in the same period.
Fifteen of the sixteen sectors that make up the industrial index recorded declines in February. While the most marked item was that of machinery and equipment with 33%, the only item that was saved was tobacco production with an increase of 17%.
The automotive, body shop, trailer and auto parts sector recorded a year-over-year decline of 12.2%. On display is the production of motor vehicles, which has the main negative impact a year-on-year decline of 17.7%. According to industry representatives, there has been an extension of plant shutdowns motivated by difficulties related to paying foreign suppliers for the import of production factors.
According to data from the Automobile Factories Association (ADEFA), in February 2024 there will be an inter-annual decrease in the number of units produced of commercial vehicles and cars. 21.6% and 16.1% respectively.
The contraction in construction was felt on inputs. In interannual measurement, asphalt production decreased by 64.9% the decline in iron and steel rods for construction was 45.9% and in processed concrete 34.8%. Meanwhile, an increase of 2.0% was recorded for construction paints.
Furthermore, INDEC reported that in January there was an 8.1% decline compared to the same month of the previous year in employment recorded in the construction sector, which represents a loss of 37,000 jobs in one year.
The INDEC measurement includes a survey of manufacturers’ expectations. This is predicted by 53.6% of companies that mainly carry out private work The level of activity in the sector will not change in the next three months, while 39.1% estimate that it will decrease and 7.3% that it will increase.
But with the policy of spending cuts carried out by the current administration, public works are paying the price. Among the dedicated companies there is basically this segment, 73.0% believe that the level of activity will decrease in March-May 2024while 25.0% believe that it will not change and 2.0% that it will increase.
To detail the reasons for the decline in activity, reference is made to the economic situation (29%), price instability 26% and delays in the payment chain (26%).
Source: Clarin
