SME retail sales showed in November a steep descentwhich reflected the persistence of controlled consumption. The Argentine Confederation of Medium Enterprises (CAME) reported that the sector “recorded an interannual fluctuation.” -4.1% at constant prices”, while the seasonally adjusted monthly comparison showed a variation of -9.1%.
Still, the cumulative total for the year remained Increase compared to previous year by 3.4%indicating a mixed development in demand.
The survey included the companies’ assessment of the economic conditions. According to CAME, 54.2% of respondents reported “year-on-year stability”, data that puts the relative majority of SMEs in a position of continuity compared to the previous year.
However, 37% said conditions had worsened, a figure that “represents an increase of four percentage points compared to October,” offsetting some of the improvement in perceptions seen the previous month. The company thus presented a panorama in which stability prevailed. although with signs of increasing deterioration.
The report also focused on expectations for the coming year. CAME pointed this out 48.6% of companies “project an improvement scenario“, while 43.7% expect the situation to remain unchanged.
Only 7.7% expect a negative development. This section showed a contrast between the present and future perspectives, with one sector seeing difficulties in the situation, but maintained recovery expectations medium term.
The study also included perceptions of the investment climate. 60.1% of SMEs were of the opinion that the general conditions for capital disbursements were unfavorable. CAME noted that business people “perceive the current context as unfavorable,” reflecting a strong sense of caution.
Given this, 14.6% said the timing was appropriate and 25.2% did not take a position. These responses described a scenario of general caution, with an emphasis on waiting for greater clarity on cost and competitive variables.
The report also details development by article. According to CAME Six of the seven industries examined suffered losses in November, a situation that the company described as “similar dynamics” to previous months.
The biggest declines occurred in Perfumery, down 17%; bazaar and decoration with a decrease of 9.7%; and food and beverages, which recorded a decline of 5.9%. The only item with a year-over-year increase was pharmaceuticals, which “recorded an increase of 1.8%.” This breakdown showed the contrast between essential products and deferrable consumption.
CAME claimed that “a dual consumption scenario” consolidated in November, characterized by budget constraints and financing constraints that widened the gap between basic purchases and non-essential goods.
The company said activities followed a “logic of transition,” manifested by strong operational caution that halted short-term investments in the face of uncertainty.
Nevertheless, he emphasized a mismatch between the present and the future: “the commercial sector maintains an optimistic forecast for next year”with the expectation of a restructuring that will allow domestic demand to be reactivated.
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