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Wednesday, May 29, 2013

Argentina Manufacturing Sector Posts Modest Expansion in April

BUENOS AIRES--Argentina's industrial production expanded at a modest pace in April, confirming that manufacturing continues to slowly recover from last year's downturn, according to a government report Friday.


Industrial output last month rose 0.1% from March, and was 1.4% higher from April 2012 in seasonally adjusted terms, the national statistics agency Indec said.

Capacity utilization stood at a six-month high of 75.9% in April, though it was somewhat below the 78.9% reported for the same month last year.

Consulting firm Orlando J. Ferreres & Asociados said its own measure of industrial activity in April increased 1.9% from last year thanks to the automobile industry, which has been operating at almost record levels of production in recent months. Automobile makers reported a 38% year-on-year increase in production to 75,496 units last month.

"That notwithstanding, these levels of monthly production are historical highs that have been difficult to exceed, which makes one realize the need to create new investment to continue expanding production capacity," the firm said in a report.

Industrial output contracted 1.2% in 2012--the first year-on-year decline since the country's 2001-02 economic crisis- -due to slower growth at home and in Brazil, which is a major buyer of automobiles and chemicals. Most economists think Argentina's economy will grow about 3% this year after expanding just 1.9% in 2012.

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