Argentina: Industry grows 0.9%, construction falls 4% in June

Argentina's industrial sector showed modest growth in June, with manufacturing activity increasing by 0.9% compared to the previous month. However, the construction sector experienced a significant downturn, falling by 4% in the same period. This divergence contrasts with the positive results seen in both sectors in May, highlighting an unstable economic performance.

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Defending industry is not incompatible with defending macroeconomic stability, low inflation, and fiscal balance.

On a year-on-year basis, industrial production saw a 2% increase, while construction activity rose by 4%. Despite these annual gains, the cumulative data for the first half of the year reveals a different picture. Manufacturing activity has declined by 2.2%, whereas construction has grown by 2.8%. Analysts describe the sector's behavior throughout the year as "sawtooth," indicating a lack of consolidated recovery.

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What Toto said is not an argument against industry. It is an argument against those who maintain that that model was a pro-industry policy. It is a truth.

The industrial figures emerged amid a public exchange between the government and the Argentine Industrial Union (UIA). Economy Minister Luis Caputo's remarks about "idiots who talk about industry" drew criticism from UIA President Martín Rapallini, who deemed the statements "not happy declarations that lead to dialogue." Rapallini asserted that defending industry is compatible with macroeconomic stability, low inflation, and fiscal balance. In response, Deputy Economy Minister José Luis Daza clarified on X that Caputo's comments were not against industry itself but against those defending a previous model that allegedly fueled deficits, inflation, and poverty. Caputo reposted Daza's message, emphasizing this distinction.

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I never called the industrialists idiots, but rather those who defend the previous model, which only grew the deficit, and with it, inflation and poverty.