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Argentina’s Consumption Weakens as Exports and Finance Outperform the Home Market

Renewed falls in June consumption, weak industrial output, plunging consumer confidence risk keeping household demand subdued despite stronger external balances and fiscal gains.

Overview

  • Official data showed a small monthly rebound in some retail channels in May, with supermarkets up 0.9% and shopping centers rising, but those gains did not persist into June.
  • Private monitors reported broader weakness in June, with Scentia estimating mass consumption down about 2.7% year‑on‑year and several high‑frequency trackers finding most indicators in negative territory.
  • Industry remains soft: metalworking fell 4.6% year‑on‑year in June, capacity use sits near 40.8%, and many manufacturing segments continue to run well below pre‑2024 levels.
  • Digital channels are the clear growth pocket as e‑commerce surged roughly 41% year‑on‑year in June and digital wallets and QR payments expanded rapidly while credit cards account for a growing share of supermarket sales.
  • The overall picture shows a split economy where export and fiscal improvements have strengthened financial metrics, but stagnant wages, weak credit and falling consumer confidence make a broad recovery in household demand unlikely soon.