Argentina Macroeconomic Perspectives

Argentina: August activity figures reflect Primaries´ negative effect, reducing the possibility of an immediate recovery

• Following several months of a positive trend, industrial production dropped 2.8% mom seasonally adjusted in August, while construction remained almost flat attaining 0.4% mom s.a. growth. Both sectors showed clear improvements during the second quarter, which continued in July. However, outlook changes as from August, and high political uncertainty interrupted the recovery.
• Manufacturing contracted 8.1% year to date. While main surveyed sectors remain in negative, the Food sector increased 0.4% yoy driven by soybean and sunflower oil and byproducts (+36.8% yoy). Despite growth in products like biodiesel and agrochemicals, there is no specific sector or group of activities which show recovery to continue driving up the agriculture´s sector positive dynamics during 1H19.