1. Inflation in August was 1.7%, the lowest in 14 months
The latest reports from the National Institute of Statistics and Censuses (INDEC) revealed a sharp decline in two sectors of the economy: manufacturing and construction. The figures show that in July, the manufacturing sector contracted by 5 per cent compared with June. Meanwhile, the construction sector showed a 4.6 per cent decline over the same period. Although declines in these sectors had been anticipated, the scale of the falls was more severe than expected. These statistics form part of a cumulative year-on-year decline of 4.9 per cent in industry and a cumulative fall of 2.6 per cent over the first seven months of 2026, compared with 2025, according to the Manufacturing Industrial Production Index. The construction sector shows a similar picture, recording a cumulative decline of 4.5 per cent compared with July 2025, but has managed to maintain a positive year-to-date growth of 1.7 per cent, according to the Synthetic Indicator of Construction Activity (ISAC). In particular, the downturn in the sector extended to 12 of the 16 sub-sectors, partly due to seasonal factors, with the hardest-hit being furniture (-13.9 per cent), metal products, machinery and equipment (-8 per cent), and motor vehicles and transport equipment (-6.4 per cent), amongst others. However, oil refining recorded an increase of 1.7 per cent. Finally, the decline in construction was reflected in lower usage of most of the materials surveyed, with the sharpest falls recorded for asphalt and plaster, the consumption of which fell by more than 20 per cent year-on-year.
Clarín: La inflación de agosto fue 1,7%, la más baja en 14 meses según el INDEC
2. The manufacturing and construction keep falling, according to INDEC
The latest reports from the National Institute of Statistics and Censuses (INDEC) revealed a sharp decline in two sectors of the economy: manufacturing and construction. The figures show that in July, the manufacturing sector contracted by 5 per cent compared with June. Meanwhile, the construction sector showed a 4.6 per cent decline over the same period. Although declines in these sectors had been anticipated, the scale of the falls was more severe than expected. These statistics form part of a cumulative year-on-year decline of 4.9 per cent in industry and a cumulative fall of 2.6 per cent over the first seven months of 2026, compared with 2025, according to the Manufacturing Industrial Production Index. The construction sector shows a similar picture, recording a cumulative decline of 4.5 per cent compared with July 2025, but has managed to maintain a positive year-to-date growth of 1.7 per cent, according to the Synthetic Indicator of Construction Activity (ISAC). In particular, the downturn in the sector extended to 12 of the 16 sub-sectors, partly due to seasonal factors, with the hardest-hit being furniture (-13.9 per cent), metal products, machinery and equipment (-8 per cent), and motor vehicles and transport equipment (-6.4 per cent), amongst others. However, oil refining recorded an increase of 1.7 per cent. Finally, the decline in construction was reflected in lower usage of most of the materials surveyed, with the sharpest falls recorded for asphalt and plaster, the consumption of which fell by more than 20 per cent year-on-year.
La Nación: Fuerte caída de la industria y construcción en julio
3. The IMF endorsed Argentina´s economic programme and ruled out risks arising from household debt
At a press conference held on Thursday in Washington, the spokesperson for the International Monetary Fund (IMF), Julie Kozack, endorsed the results of Argentina’s economic programme under Javier Milei’s government. Despite concerns regarding the decline in economic activity in some sectors, the spokesperson emphasised that the country had made “remarkable progress in stabilising its economy”. Among these, she cited two consecutive years of primary fiscal surpluses, a marked reduction in inflation, now standing at around 30 per cent, the recomposition of international reserves, a fall in poverty and strengthened market confidence. When asked about the recent negative figures in the manufacturing and construction sectors, Kozack did not ignore the “ups and downs in the monthly data”, but emphasised that the IMF focuses on the “overall trajectory” of the economy and the impact of the reforms, which she believed would broaden the country’s growth prospects. She also referred to the rise in payment defaults among Argentine households and stated that this is an issue the organisation is monitoring. However, he stressed that the IMF does not consider that “this poses a significant risk to financial stability in Argentina”, citing the fact that total household debt stands at just 8 per cent of GDP, which is lower than in most countries in the region. She also added that the banking system is well prepared, with adequate levels of capitalisation, liquidity and provisions covering more than 85 per cent of non-performing loans. Furthermore, the spokesperson stated that, looking ahead, the key priority for the country remains “to further strengthen its policy frameworks and economic resilience”, including the continued reduction of financing risks and the rebuilding of reserves. Finally, she confirmed that the next mission by the Fund’s technical staff, for the third review of the agreement, is scheduled to begin in the week of 21 September
4. In the Chamber of Deputies, the opposition passed the motions concerning the state of emergency regarding disability and household debt
On Wednesday, a special sitting took place in the Chamber of Deputies, called by the opposition, which, having secured a quorum, debated bills aimed at addressing the disability crisis as well as household over-indebtedness. In the chamber, the opposition managed to secure the presence of 135 lawmakers, who were joined by members of the ruling coalition. Deputies from the PRO and the UCR, however, were absent. The session began with a discussion of the bill seeking to extend the Disability Emergency until 2027, which failed to secure the votes required to allow it to be taken directly to the floor for debate. Nevertheless, following a subsequent vote which garnered 249 votes in favour, the Chamber of Deputies agreed to schedule an information meeting in the relevant committees to move the bill forward. It is also expected that a committee report will be issued on Wednesday 23, after which the matter would be eligible for debate on the floor of the House. The Lower House then proceeded with the debate on the bills concerning household debt and late payments. As with the Disability bill, a vote was taken against allowing these proposals to be debated. Consequently, at the instigation of the opposition, a fresh vote was held. With just one vote against, the Chamber of Deputies referred the matter to the Finance and Consumer Protection Committees to examine the various bills, tabled by different political groups, addressing the issue of over-indebtedness amongst Argentine families and, following this, to issue a report so that the matter could return to the Chamber. In accordance with the scheduled timetable, the committees are due to meet on Tuesday 15 and Tuesday 22, and to issue their report on Tuesday 29.
Perfil: Diputados votó impulsar dictámenes sobre Emergencia en Discapacidad y Endeudamiento
5. The government was unable to hold a session in the Senate, but it made progress on the Central Bank reform bill
The Senate was the scene of two parallel events this week, both linked to the economic agenda of La Libertad Avanza. The first of these was the cancellation of the sitting, the purpose of which was both to reform the Biofuels Act and to make progress on judicial reforms. The session was called off even before it was officially announced, at midday on Wednesday, when the Parliamentary Labour Committee meeting to set the timetable had not yet taken place. This unexpected setback represents a further legislative defeat for the ruling coalition following the halt to the approval of the Super RIGI. Furthermore, the sugar-producing provinces, which had strongly championed the reform to increase the bioethanol and biodiesel blending levels from 12 per cent to 15 per cent, were adversely affected. However, whilst the session was adjourned, the draft reform of the Central Bank’s (BCRA) Charter received a favourable report in the joint plenary session of the National Economy and Budget and Finance Committees, leaving it ready to reach the floor. During the meetings, the central bank’s officials, Governor Santiago Bausili and Deputy Governor Vladimir Werning, defended the government’s initiative, arguing that the bill was driven by economic considerations and that it “has no political origin”. The bill secured the support of the ruling party and its provincial allies, the PRO and the UCR, with no changes to the version approved by the Lower House on 26 August. If it continues along this path, the reform of the BCRA’s Charter is set to become law following its consideration in the Senate.