BUENOS AIRES, Dec 22 (Reuters) - Argentina's November industrial production growth was flat compared with a year earlier, its worst performance since October 2002, due largely to sinking auto production, the government said on Monday.
The figure came in well below the 2.3 percent median rise forecast by nine analysts in a Reuters poll. Estimates had ranged widely, from growth of 3.5 percent to a 6.4 percent contraction, non-seasonally adjusted.
Argentina's economy began to falter in the fourth quarter, although roughly 7 percent growth is still expected for 2008. A global downturn is seen catching up with the country next year when analysts forecast very low growth or even a recession.
'The impact of the global crisis is clearly reflected in Argentina's industrial slowdown,' Economia & Regiones consulting group said in a report.
'Reduced liquidity and capital flight, along with overall uncertainty, are discouraging production, while at the same time, high inflation ... leaves industries engaging in import substitution unprotected,' the report added.
Factory output was down 0.9 percent in November from a month earlier, according to the government's seasonally adjusted data.
Production in the automotive sector slid 24.4 percent from November 2007 and 23.1 percent from October, as carmakers reacted swiftly to a sharp drop in demand in both the local market and the country's main export market, Brazil.
The automotive sector had been the darling of Argentina's industrial rebound after a 2002 currency devaluation sharply lowered local production costs.
Steel and aluminum production fell 11.1 percent year-on-year in November and 13.8 percent from October. Oil refining dropped 12.4 percent from November 2007 and 12.9 percent from October.
Despite November's poor performance, industrial output was up 5.2 percent in the first 11 months of the year compared with the same period of 2007, in non-seasonally adjusted terms.
(Reporting by Lucas Bergman and Hilary Burke; Editing by Gary Crosse)
((e-mail: hilary.burke@thomsonreuters.com; +5411-4318-0663; Reuters Messaging: hilary.burke.reuters.com@reuters.net))
((For historical Argentine statistical data in Spanish, please see pages through)) Keywords: ARGENTINA ECONOMY/INDUSTRY (Xtra: To see a calendar of Argentine economic indicators please click on or type in ARECI02 on a quote page and press enter. For separate pages detailing Argentine analysts' economic forecasts, click on,, and) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The figure came in well below the 2.3 percent median rise forecast by nine analysts in a Reuters poll. Estimates had ranged widely, from growth of 3.5 percent to a 6.4 percent contraction, non-seasonally adjusted.
Argentina's economy began to falter in the fourth quarter, although roughly 7 percent growth is still expected for 2008. A global downturn is seen catching up with the country next year when analysts forecast very low growth or even a recession.
'The impact of the global crisis is clearly reflected in Argentina's industrial slowdown,' Economia & Regiones consulting group said in a report.
'Reduced liquidity and capital flight, along with overall uncertainty, are discouraging production, while at the same time, high inflation ... leaves industries engaging in import substitution unprotected,' the report added.
Factory output was down 0.9 percent in November from a month earlier, according to the government's seasonally adjusted data.
Production in the automotive sector slid 24.4 percent from November 2007 and 23.1 percent from October, as carmakers reacted swiftly to a sharp drop in demand in both the local market and the country's main export market, Brazil.
The automotive sector had been the darling of Argentina's industrial rebound after a 2002 currency devaluation sharply lowered local production costs.
Steel and aluminum production fell 11.1 percent year-on-year in November and 13.8 percent from October. Oil refining dropped 12.4 percent from November 2007 and 12.9 percent from October.
Despite November's poor performance, industrial output was up 5.2 percent in the first 11 months of the year compared with the same period of 2007, in non-seasonally adjusted terms.
(Reporting by Lucas Bergman and Hilary Burke; Editing by Gary Crosse)
((e-mail: hilary.burke@thomsonreuters.com; +5411-4318-0663; Reuters Messaging: hilary.burke.reuters.com@reuters.net))
((For historical Argentine statistical data in Spanish, please see pages through)) Keywords: ARGENTINA ECONOMY/INDUSTRY (Xtra: To see a calendar of Argentine economic indicators please click on or type in ARECI02 on a quote page and press enter. For separate pages detailing Argentine analysts' economic forecasts, click on,, and) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.