By Ken Parks FOR DOW JONES NEWSWIRESIndustrial Production (Year-On-Year):
Nov Oct Sep Nov09 FY/2009
Forecast: +8.1% +8.9% +9.0% - -
Actual: +12.5% +8.2% +9.7% +1.1% +0.4%
BUENOS AIRES (Dow Jones)--Argentina's industrial production grew more than expected in November, on the back of big gains in automobile and construction materials output.
Industrial production last month rose 12.5% on the year, and 4.1% in seasonally adjusted terms from October, the national statistics agency, Indec, reported Friday.
The annual reading was well above the 8.1% median forecast of 10 economists surveyed by Dow Jones Newswires. Friday's report came as little surprise to economists and investors after President Cristina Fernandez said Wednesday that manufacturing grew 12.8% on the year in November.
"We expect the industrial sector to continue to record solid growth in the coming months, driven chiefly by solid foreign demand as domestic demand among some of the main trading partners remains strong, namely Brazil," Goldman Sachs economist Alberto Ramos said in a note.
Capacity utilization was 83.4% last month, its highest level in a year, led by basic metals at 90.2%; textiles 90.1%; paper and cardboard 88.8%; petrochemicals 87.1%; and automobiles 84.2%.
Argentine industry expanded 9.7% during the first 11 months of the year, compared to the same period in 2009, according to Indec.
Expansion was noted in food processing, textiles, printing, automobile and machinery, petrochemical, construction materials and metals output, while declines were observed in tobacco, paper and cardboard, and oil refining.
The growth in food processing was extremely sluggish at just 3.3% on the year in November. Though milling of cereals and oil bearing grains rose 21.4% last month, beef production plunged 30.1%, while the output of other meats such as chicken and pork was almost flat.
Falling or stagnant meat production could have serious consequences for consumers and their pocketbooks during the summer months when consumption soars as carnivorous Argentines take advantage of good weather to host their traditional outdoor barbecues.
Indeed, food and beverage prices posted the biggest gains in Indec's consumer price index for November. Annual inflation as measured by the CPI was.. Read full article
