2024-09-24 19:51:42
Despite efforts National Government If we are to establish the notion that an economic recovery has occurred, the data show a different picture of repeated declines in consumption and industry.
After processing a large amount of data for August, it was concluded that there was no strong recovery in the eighth month of this year as claimed by the ruling party.
The Chamber of Commerce (CAC) released on Tuesday In August, the consumption index (CI) for goods and services decreased by 7.8% year-on-year and 1.8% quarter-on-quarter..
This represents a contraction of 6.4% in eight months compared with the same period in 2023.
The CAC linked the situation to a “slight acceleration” in the economy. inflation (4.2%) affects the purchasing power of the population.
The national government insists wages have risen faster than prices over the past four months, but data shows this hypothetical situation has not translated into daily consumption.
Market segments studied by CAC August recorded a very significant decline: Clothing and footwear fell 17.1% from the same period last year; transportation and vehicles fell 13.8% (car registrations and fuel use fell), while entertainment and culture fell 21.7%.
In view of the characteristics of the CAC sample, the food was not broken down. Instead, the consulting company Focus Market conducted a sampling survey through a system that reads barcodes at 756 points of sale across the country.
The work showed food and beverage consumption fell 13.7% in August from a year earlier and 4.6% from the previous quarter.
At the same time, the number of tickets fell by 7.3% compared with August 2023 and by 3.2% compared with July this year. The number of tickets per ticket decreased by 7.3% year-on-year to 4.3 per ticket, but increased by 3% compared with July.
“Popular consumption still continues to be affected. The outlook for the second half of the year is that sales cannot exceed year-on-year. Compared with the last quarter of 2023, the quarter is full of anabolic drugs to improve demand conditions, increase social programs, financing, in the context of the election Increase pensions and pensions to increase the consumption of different groups in the socio-economic sector, said Focus Marketing Director Damián Di Pace.
The report also pointed out that the contraction in consumption in the country’s interior areas was more severe than that in metropolitan areas. The provinces saw an annual decrease of 14.6% and a quarterly decrease of 4.5%. AMBA decreased by 11.9% and 4.9% respectively.
Di Pez agreed with the CAC that “it will be difficult for Argentinians’ incomes to recover immediately as the economy improves very slowly on a monthly seasonally adjusted basis but is down year-on-year.”
Similarly, he pointed out that in the retail channel, there are “consumer disputes” based on “offers, promotions and discounts”, which “become the basic rule for companies to maintain sales.”
The industry is also declining
Changes at the consumption level are closely related to industry. Data for the industry remains poor and far from confirming positive trends.
The UIA’s first assessment at the national level showed that August broke the monthly improvement seen in previous months.
The industry report of the Metallurgical Industrialists Association of the Republic of Argentina (ADIMRA) showed that the annual decline last month was 10.2%, the strongest since the end of the epidemic, and the cumulative decline in eight months was 15.5%. Compared to July, a plateau was observed.
Córdoba’s metallurgical industry declined by 13.5%, the worst hit among the five strongest provinces in the sector: Buenos Aires, -9.2%; Entre Rios, -5.1%; Santo Tafe, -11.1%, Mendoza, -7.8%.
In recent public appearances, President Javier Milley and Economy Minister Luis Caputo have both tried to encourage businessmen to accelerate investment. They even put them in a position of being quasi-responsible for the results of the cuts.
However, the business community is cautious as the domestic market is weak and cannot provide enough profitability for companies.
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