It looks like the recession is still very much a thing. According to national statistics agency INDEC’s monthly report on the main sectors of the economy, construction and industrial activity dropped yet again in November, compared to the same numbers from last year. Construction dropped 9.4 percent, while the industrial output decreased 4.1 percent.
If we were to find a silver lining to this — it being New Year’s and all — it would be by highlighting the fact that numbers decreased to a less severely compared to prior months. In October, industrial activity dropped by 8 percent while construction did so by 19.2 percent.
Moreover, this month’s numbers are slightly below the sectors annual averages — 4.9 percent decrease for the industry and 13.5 for construction. Those who are optimistic consider this to mean that we have already hit rock bottom and could slowly start being building from there.
When dissected, it can be appreciated that the industry’s different sectors had quite different realities this month. According to Indec’s report, the textile sector saw a whopping 27.7 percent drop in its activity, although its annual average of 2.2 percent drop is quite lower. Oil refining and tobacco industries followed with 10.4 and 1.3 percent drops, respectively.
In contrast, the auto industry, which registers a 13 percent drop in 2016 so far, saw a 1.5 percent increase. Production of chemicals also rose by 0.4 percent.
As for the silver lining in the construction sector, Indec reported that this is the fourth month where the industry hired more workers, after a drastic contraction in the first months of the year. Still, the total amount of construction workers in October 2016 is 10.5 percent lower than the same month last year.