Argentina’s construction sector records monthly decline in June

In June, Argentina’s construction sector experienced a 1.5% decline compared to May, as the National Institute of Statistics and Censuses (INDEC) announced.

The latest figures uphold the previous month’s negative trajectory.

On an annual basis, construction activity was a contraction of 2.8%. This follows the 2.9% decline reported in May.

Cumulatively, during the first half of 2023, construction decreased by 2.1% compared to the same timeframe in 2022.

The year 2022 witnessed a 3.5% growth in construction, starkly contrasting the significant 30.9% recovery in 2021.

Predictions for 2023, specifically between June and August, suggest no significant change in this trend.

Private sector firms attribute this downturn to price instability and a slowdown in economic activity.

On the other hand, public sector companies point to delays in the payment chain as a contributing factor.

Surveys by INDEC conducted among leading companies in the industry reveal pessimistic expectations for the July-September 2023 quarter.

Specifically, 63.1% of those mainly in private construction anticipate stable activity levels, 21.7% forecast a decrease, while 15.2% expect growth.

For companies in the public sector, 55% believe there will be no change in activity over the next three months. In contrast, 28% predict a decrease, and 17% anticipate growth.