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[BUSINESS] · Argentina · 65 sources

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Argentina SME retail sales fall as economic pressures mount

Argentina is facing a significant economic downturn characterized by declining retail sales, industrial contraction, and a crisis in the textile sector. According to the Confederation Argentina de la Mediana Empresa (CAME), SME retail sales fell 0.2% year-on-year in August and 2.7% compared to July, resulting in a cumulative 2.4% decline for the first eight months of 2026. This contraction is attributed to reduced purchasing power caused by rising utility tariffs, household debt, and cautious consumer behavior focused on essential goods. While online sales grew by 17.6%, they were insufficient to offset the broader decline.

The industrial sector is also struggling. The textile industry has seen a severe downturn, with production dropping 24.4% year-on-year in the first half of the year and nearly 27,000 formal jobs lost since late 2023. Industrial capacity utilization remains low, with the textile sector operating at only 46.6% capacity in June. Additionally, overall manufacturing activity is significantly below 2023 levels.

Financial indicators reflect these pressures. While private dollar deposits reached a record high in August, peso-denominated credit to the private sector saw its first real decline since March. Investment remains stagnant, with fixed capital formation falling below 2023 averages. In contrast to the general economic malaise, the motorcycle market showed resilience, with patent registrations increasing 34.2% year-on-year in August.

Entities

ACARA · Argentina · Banco Central de la República Argentina · Banco Provincia · CAME · Confederación Argentina de la Mediana Empresa · Federación de Industrias Textiles Argentinas · Honda

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