Argentina's industry at 58.4% capacity in May, idle capacity exceeds 40%

Industrial capacity utilization in Argentina fell to 58.4% in May 2026, according to INDEC data, down from 59.9% in April and 58.9% in May 2025. The slowdown left idle capacity above 40% of total potential output.

The most utilized sectors were oil refining (88.7% of capacity), basic metal industries (75.4%), paper and cardboard (68.1%), chemicals (65.6%) and food & beverages (60%). At the opposite end, metalworking (excluding automotive) operated at 38.7%, rubber and plastic at 39.6%, textiles at 42.2%, tobacco at 43.2% and automotive at 45.5%.

The decline was driven mainly by a 29.6% drop in agricultural machinery production and a 34.1% fall in household appliance output. Automotive utilization fell from 56.8% a year earlier to 45.5%, reflecting reduced vehicle output. Overall industrial production contracted 5.7% year‑on‑year.