The industry grew 6% in January

A report confirms the revival UIA

Factory activity is in clear recovery, although still considerably below levels two years ago. This is shown by the monthly report of the Union Industrial Argentina (UIA), which was released yesterday and shows a rise of 6% in January in connection with the same month of 2009.

 
The rebound is a fact, but with mitigating circumstances. On the one hand, says the study, part of the scale of the figure is because the volumes are contrasted with months of very low activity. "The strong inter-annual growth recorded in January and December should be read bearing in mind that while there is a trend of recovery, the quantities produced in the months that are the basis of comparison (in January 2009 and December 2008) were fully the impact of the crisis, "he says. The other objection is that the level of production is still, as the UIA, at levels 4.4% lower than those recorded two years ago, in January 2008.

The numbers are not so encouraging when compared with December: in this case, the report notes a decline of 6.2%. "He stressed the impact of holiday breaks and stops for plant maintenance in the automotive and steel," says the text. In fact, although both sectors showed significant increases against January 2009, the quantities produced were respectively 50.8 % and 29.9% lower than last month [in December]. "

The automotive sector was again, then, the great promoter of the activity: it increased by 68.8% and reached a production of 31,602 vehicles. "The reactivation is mainly associated with the surge in exports, anchored to the dynamism of the Brazilian automotive market," said the UIA.

Machines at full
Another reason for the improvement was significant production machinery. According to the Metal Industries Association of Argentina (Adimra) cited by the UIA, the manufacture of such products introduced a year increase of 14%. "This positive scenario was due, in addition to the aforementioned recovery of the steel industry and the automotive sector, the rebound in the metalworking industry, where he confirmed signs of reversing the sharp drop seen since early last year, showing the second growth year in 11 months-added work. He also accompanied the sustained improvement in textiles, expanding for the fifth straight time after 14 months of decline, paper and cardboard (fifth year increase in 6 months) and editing and printing. For its part Other blocks, such as chemicals and chemical products (2.1%), nonmetallic minerals (5.7%) and rubber and plastic (4.2%), while sustaining positive changes, moderated the rate of increase. "

The downside was the food and beverages sector which, according to the UIA, "deepened its annual retreat on account of lower production in oil and grinding meat. In January, the report said, were lower than 20%. "This fall, he added, is explained by the strong impact that had, in January and the second half of last year, the shrinkage of the oil industry (particularly soybeans, which represents 92% of the milling total), the product of raw material shortages due to the drought and restrictions on temporary import for processing oilseeds. "