Argentina's industrial output slips 2.2% in first half despite June rebound

Argentina's industrial production index (IPI) rose 2 % year‑on‑year in June 2026, ending a two‑month streak of declines, while the construction activity index (ISAC) grew 4 % YoY. Nevertheless, the cumulative January‑June period shows a 2.2 % drop in industrial output compared with the same half‑year in 2025. Nine of the 16 industrial divisions posted gains, led by basic metals (+11.8 %), chemicals (+11 %), wood‑paper (+8.4 %) and food & beverages (+6.2 %). The sharpest falls were in other equipment (‑25.3 %), machinery (‑16.8 %) and textiles (‑15.9 %).

In the automotive sector, July production fell 15.8 % month‑on‑month and 16 % below July 2025 levels, with total output for January‑July down 18 % YoY. Exports, however, rose 4.5 % from June and were 1.6 % higher than a year earlier, Brazil remaining the main destination (64.5 % of shipments). Industry leaders describe the situation as a “re‑adjustment phase”.

Construction recorded a 4 % YoY increase in June but a 4.1 % month‑on‑month decline, marking the fourth monthly drop of the year. The sector’s H1 cumulative growth stands at 2.8 % YoY, though firms expect activity to remain stable or modestly lower in the July‑September quarter.