According to Cameen, industrial production SMEs fell by 5 per cent in October



[ad_1]

SME business declined for the sixth consecutive month, and the industry has only 58.6% of its capacity. Although growth in growth grew slightly, 74 percent believe that the company's situation is regular, poor or critical. Only 18.7% are expecting recovery in the next three months.

The lack of market liquidity, the poor quality of the payment chain, excessive interest rates and debt repayment problems hinder the business of SMEs and make it difficult for many companies to reduce or rewrite their continuity.

When the internal market does not go down, the output of industrial SMEs decreased by 5% in October compared to the corresponding month of the previous year. It is the sixth consecutive month when the industry falls.

Compared to September, the increase was 5.6%, mainly due to the seasonal variation of the month. In the ten months of this year there is a 1.9% decrease compared to the same 2017 season.

The data comes from CAME's monthly industrial survey, conducted among 300 small and medium-sized businesses. Industrial Production Index Pyppe (IPIP) registered 79.8 points in October.

The most significant losses were "Footwear and leather goods" (-15%), "Rubber and plastic products" (-10.8%), "Wood products and furniture" (-10.4%), "Paper (-8.5% "Metal Products, Machinery and Equipment" (-7.3%), "Transportation Materials" (-3.3%), "Textile and Clothing Products (-3.3%) and" Electromechanical Products, Information Technology and Manufacturing "(-2 , 5%). On the other hand, "Chemical Products" production did not change, and "Food industry" (0.1%) and "Non-metallic minerals" (1.6%) grew.

"Development of production does not seem to recover and will continue at least on Wednesday until mid-2008," says Pablo Bozzanno, President of the Information, Electronics and Communications Office of Centro de Argentinai (CIIECCA). "The installed capacity is less than 60%, businesses are not now good but do not cancel the waste fees," he warns and explains that the only companies that are stronger are "those who take and benefit from devaluation and the new dollar price".

In October, 53.9 percent of the consulted industries came to annual production (58.9% in September) and 36.7% grew (30.9% in the previous month). Although most companies continue to decline, growth in the growth sector has increased.

The proportion of positive returns also rose again in October: 36.3% compared with 32.1% in September and 28.9% in August. The percentage of sectors with negative and zero profitability is still high. But many companies have reduced their business, suspended their staff, and lowered all kinds of costs to maintain their business.

"If the dairy industry loses a serious financial situation because of rising costs, rising raw material prices, higher labor costs and lower consumption," explains Pablo Villano of small and medium sized dairies (APYMEL).

The payoff chain is further weakened. Managing Director Daniel García (CAFLED), "Reporters want to charge 30 days and customers pay 120 euros, which means that companies in the industry are facing indebtedness at unreasonable prices." Consultants agree that the payment method is 120 days late and that there are many difficulties in reducing checks.

The use of installed capacity in SMEs continued to increase slightly in October to 58.7 per cent, but it is still too low, reflecting a decline in activity.

The expectations for the future are still unresolved: only 18.7% of the respondents expect production to grow over the next three months, while 29% believe it will continue to decline. The rest do not know or believe that it will remain at the current level.

Possibly this explains why the investment does not go away: 7 of the fifteen industries have not planned new investments in the next three months.

CP

[ad_2]

Source link