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Fall in sales, late payments and deterioration of employment: the photo of industrial companies today

2024-03-06T16:06:50.051Z

Highlights: Argentine Industrial Union survey shows worst indicators in four years. Lowest levels of the series recorded in variables of production and sales. 53% of the companies surveyed had difficulties in meeting at least one of the payments. The number of companies that could not meet any of these payments (6.9%) doubled since the last survey. But 50% of companies expect the economic situation of their company, the sector and the country to get worse in the next year, according to the UIA.


According to a UIA survey, the firms show the worst indicators in four years. However, they are optimistic for next year.


The first survey of the year carried out by the Argentine Industrial Union on the situation of its members showed

the worst indicators

since 2021, when the entity began to carry out its "Industrial Performance Monitor" (MDI).

The MDI, which measures production, sales, exports, employment and other variables, fell 6.9 points compared to last year and stood at 29.9 points.

The indicator shows levels of contraction in activity since July 2022 and

has accumulated 7 consecutive surveys below 50 points, practically two years of decline.

The lowest levels of the series were recorded in the variables of

production (61% of companies said they manufactured less) and sales (69%)

, hitting SMEs especially, which represent 96% of the sample of 700 companies in the UIA.

"This situation resulted in more companies having

difficulties in making payments

," the entity explained in the report.

53% of the companies surveyed had difficulties in meeting at least one of the payments

(salaries, suppliers, financial commitments, public services, taxes).

The number of companies that could not meet any of these payments (6.9%) doubled since the last survey.

"Also in this framework there was a

change in trend in the employment series

, which until now was the one that showed the greatest stability. The

highest percentage of companies with a drop in employment

and a notable deterioration in relation to previous surveys was recorded."

Specifically,

employment fell in 21% of the companies surveyed

, the highest value in the series.

For the second consecutive month, more companies reduce their employment levels than those that increase them.

"Companies considered that their economic situation is worse than a year ago and they expect the impact of the fall in consumption, public works and the lower activity of other companies," says the report that was carried out on the basis of a survey during the first half of February.

But as happens with other surveys, when consulting companies about their expectations for a year from now,

approximately 50% said they expect the economic situation of their company, the sector and the country.

NE

Source: clarin

All business articles on 2024-03-06

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