The industry continues “reverse”. In November, factories used only 63.3% of installed capacity. It represents a fall of 5.9 percentage points compared to the same month of 2017, according to the monthly INDEC survey. Compared to November 2016, the decline is 5.1 points.
It is a generalized regression that shows an industry with more than a third of idle capacity. “The blocks that present in November 2018 a lower use of installed capacity compared to the same month of 2017 are: food products and beverages, textile industry, paper and cardboard, printing and editing, oil refining, chemical substances and products, products of rubber and plastic, non-metallic mineral products, automotive industry and metalworking “.
This happened because, for the seventh month in a row, in November, the manufacturing industry continued to decline and fell to a record 13.3%. In July the growth it had had during the first months of the first semester was zero and in November it has accumulated a drop of 3.8% in 11 months.
The industry has already accumulated three years of bad performance. In 2016, it fell 4.6%, in 2017 it recovered just 1.8% and in 2018 it will end up falling slightly more than 4%. In three years it represents a drop of 7%, with a sharp drop in the level of employment.
The sector with less use of its production potential was the textile industry with only 43.9% of its installed capacity, which is explained by “the lower production of cotton and woolen yarns, both flat fabrics and point”.
The second place was occupied by the automotive industry with 44.4%, which “is linked to the decrease in the level of domestic demand”. And the third place was for the metal industry, with 44.5% “mainly due to the fall in the levels of production of agricultural machinery and durable consumer goods, in particular, the white line”.
The retraction in the manufacture of food and beverages with a level of utilization of installed capacity of 63.5% lower than the 67.7% of November 2017 “is mainly explained by the decreases in the grinding of cereals and oilseeds, in the confectionery products and in the elaboration of beverages (water and sodas, soft drinks and beer) “.
In relation to a year ago, there are sectors with double-digit retracements. For example textiles down 17 points and the automotive industry (- 10.6 points) by the fall of sales to the domestic market that dragged tires.
In oil refining, the use of facilities decreased from 79 to 73.2%.
Above the values of November 2018, the “basic metal industries” stand out (+ 4.9 points) due to the higher growth of crude steel and primary aluminum production, mainly due to better export levels.