The production of industrial SMEs rose 47 percent year-on-year in May, although the comparison is with a month of low activity due to the hard quarantine applied in the second quarter of 2020. CAME reported that if the same month of 2019, the indicator shows a decrease of 4.8 percent. However, the encouraging data is that the activity climbed 11.1 percent compared to April.
In the first 5 months of the year, the SME industry accumulates an increase of 20.2 percent compared to the same period in 2020 and a decrease of 8.1 percent compared to January-May 2019. “Although with softer growth rates In the next three months, the SME industry should continue to rebound strongly and close its gap with 2019, even despite the new isolation measures, ”CAME remarked.
Two factors that drove the SME industrial sector in May: 1) the growth of industrial exports (+85.3 percent annually), especially to Brazil, which is the main market for small and medium-sized companies; and b) the demand for construction supplies, where sales associated with small spare parts and extensions were added to the recovery of public works and larger private works.
All the items surveyed grew in the annual comparison. Transportation Material, with an annual increase of 100.1 percent, led the recovery. In the SME sector, a good production rate was especially noted in trailers, semi-trailers, hoppers and auto parts for motorcycles, with a high predominance of units destined for the domestic market. Anyway, the May 2021 production remained below May 2019 (-5.0 percent).
In Clothing and textiles, production grew 78.1 percent annually in May, but fell 12 percent compared to May 2019. This sector is recovering from the sharp falls of last year, when sales were practically paralyzed for several months (-50 , 6 percent per year fell in May 2020). “Last month the demand for work clothes, school clothes, health sector and winter season clothes had a positive impact due to the proximity of the cold. But the recovery is slow because it is an industry highly oriented to the domestic market and dependent on purchasing power, which cannot recover ”, highlighted CAME.
Paper, cardboard, publishing and printing was the manufacturing branch that grew the least: (+14.9 percent annually), but that is explained because it had been one of the sectors that fell the least in May 2020.