Industry is declining everywhere, especially the food sector.
In February, economic activity plummeted by 2.9% compared to last year and by 0.5% compared to January (in seasonally adjusted terms). Over the first two months of the year, the economy contracted by 1.9%.
Such data is provided by the analytical report from Ferreres y Asociados, describing the start of 2026 as a "zigzag recovery." The solid rise in January was followed by a sharp slowdown in the second month.
The growing raw material sectors do not compensate for the crisis in industry and consumption. The government celebrated January's "historical highs," but February's figures push the official growth target of 5% for the year further away.
The Industrial Production Index (IPI) from consultants shows a divide: production and employment are falling, while certain sectors benefit from government policies. Industry shrank by 7.9% (due to declines in milling and machine engineering), and trade fell by 6.9% (weak domestic demand due to income cuts). Even utilities dropped by 5.6% — people are consuming less electricity, gas, and water amid collapsing wages.
Industry is declining everywhere, especially the food sector due to low oil processing volumes. "We do not expect a quick recovery in the coming months — it depends on the growth of real household incomes, which are currently at rock bottom," predicts Ferreres.
In contrast, extraction soared (+12.6%, a record for Vaca Muerta amid a decline in conventional oil production), finance (+8.8%, speculation and rent), and agriculture (+6.7%, with a harvest increase of 13% compensating for a 7.1% decline in livestock).
Construction is barely crawling (+0.7%) due to a halt in government orders, regional budget crises, and falling revenues. Transport and communication are also struggling.
According to EMAE from Indec, January was encouraging: +1.9% year-on-year, +0.4% month-on-month. However, the comparison is made with the same difficult periods of the current administration — this masks the failure. Comparing with 2023 shows a real chasm, reflecting the reality of households and businesses.
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