Argentina’s construction activity falls 4.6% in July

Argentina’s construction activity fell 4.6% in July from the previous month, extending a contraction that reached 4.3% in June, according to the National Institute of Statistics and Censuses, or Indec.

The sector also recorded a 4.5% decline compared with July 2025. Despite the monthly and annual falls, construction activity remained 1.7% higher over the first seven months of the year.

Official figures showed that construction employment rose 1.2% year on year in June, reaching 376,374 jobs. Permits issued for private building projects also increased, with authorized construction area up 31.6% from the same month in 2025.

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In July, material shipments remained almost at the level reached during the second quarter of the year.

Other indicators pointed to continued weakness. Construction materials sales fell 0.81% in July from June and dropped 6.5% year on year, according to Grupo Construya, an association of companies that produce and sell building materials. The group said material shipments remained almost at the level reached during the second quarter.

Construya expects demand for materials to recover slightly in coming months if macroeconomic conditions continue to improve, particularly through a significant reduction in interest rates on loans. In 2025, construction activity grew 6.3%, after plunging 27.4% in 2024.

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In the coming months, demand for materials will show a slight recovery as long as macroeconomic conditions continue to improve, especially if there is a significant reduction in interest rates on loans.