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The sale of construction supplies registered a downward correction of 13.7% in November.
The sale of construction materials plummeted 13.7% in November, after the electoral gathering.
The consumption of construction products remains 7.2% below the levels recorded last year in the first eleven months of 2023. The sectors doubts about the official dollar and the continuity of public works
Given the uncertainty about the future of the economy, in October construction companies anticipated purchases and overstocked merchandise, so the sale of construction materials grew strongly. In this context, during November a collapse was recorded as a correction of the coverage process due to doubts about a possible devaluation, stagflation and a brake announced by the new government for public works.
The Construya Index (IC), which measures the evolution of the volumes sold to the private sector of construction products manufactured by the main companies in the sector, registered a seasonally adjusted monthly drop of 13.7% last month and was ranked 4. 6% below the same period last year. In this way, the accumulated value from January to November closed 7.2% below the same period in 2022.
“In the weeks prior to the October presidential election, a very significant anticipation of the demand for inputs was observed. The high uncertainty regarding the day after Sunday, October 22, encouraged purchasing by the public and the formation of stocks throughout the value chain. To a large extent, this phenomenon explained the correction observed during November,” explained Construya.
The consumption of products for construction works remains 7.2% below the levels recorded last year in the first eleven months of 2023.
The consumption of products for construction works remains 7.2% below the levels recorded last year in the first eleven months of 2023.
The entitys index measures the evolution of the volumes sold to the private sector of the following construction products manufactured by the leading companies that make up the Construya Group: ceramic bricks, Portland cement, lime, long steel, aluminum carpentry, adhesives and pastines, waterproofing paints, sanitary ware, boilers and home and heating systems, taps and water pipes, ceramic floors and coverings.
It is worth clarifying that the synthetic indicator of construction activity (ISAC) measured by Indec that will be released this Wednesday corresponds to October. Therefore, it is not comparable with the results shown by the Construya Index.
As in other areas of the economy, after the runoff, a stoppage of sales and preventive rebranding was recorded in construction materials. There he addressed the uncertainty about what will happen to the official dollar after December 10, once the new government of Javier Milei takes office. The market began to negotiate that the official exchange rate will jump to at least $500 from next Monday, although more details are expected from the economic team led by Luis “Toto” Caputo.
Gustavo Weiss, from Camarco, warned of the impact of a possible stoppage in public works.
Gustavo Weiss, from Camarco, warned of the impact of a possible stoppage in public works.
Another doubt in the sector is what will happen to public works with the new management. La Libertad Avanza warned that “there is no money” but the premise will be to respect existing contracts. According to official data, there are 2,308 projects in execution throughout the country that depend on the Ministry of Public Works which, from 2024, will become a secretariat within the Infrastructure portfolio that Guillermo Ferraro will lead.
Of the works that are underway, 514 correspond to road infrastructure, 1,031 to integrated water resources management and 763 to urban, rural and care infrastructure. In short, they included universities, highways, routes, health centers, child development centers, among others. According to information from Public Works, there are also 615 projects in the process of evaluation and approval.
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Meanwhile, a few weeks ago, the president of the Argentine Chamber of Construction (Camarco), Gustavo Weiss, had assured: “ There are already telegrams of layoffs in companies due to Mileis statements. The firms normally issue invoices 60 days in advance and are saying that they will not execute more if they are not paid,” he said in radio statements.
The businessman warned about the possibility of a “very important crash” in economic activity due to works that, he stated, employ “300,000 people who would be homeless.” That is more than half of the jobs registered in the sector. |
