In December 2025, the installed capacity utilization in Argentina's industry fell to 53.8%, marking the lowest level in almost two years, as reported by the National Institute of Statistics and Censuses (Indec). This represents a decrease of 2.9 percentage points compared to December 2024 and the third consecutive month of declining industrial capacity use, which had peaked at 61.1% in September of the same year. Over the past two years, the industrial performance has been poor, with the economy cooling and shifting towards the production of raw materials. Notably, only six of the last 24 months have seen average capacity utilization exceed the 60% mark.

Analyzing the industrial sectors reveals that certain areas have maintained better capacity utilization rates compared to the general average. For instance, oil refining stands out with a utilization rate of 87.1%, followed by the paper and cardboard industry at 65.0%, food and beverage production at 63.6%, chemicals at 58.6%, and metal industries also displaying decent figures. This sector-specific analysis highlights the disparities within the industrial landscape of Argentina, where some sectors are performing significantly better than others amidst an overall decline.

The implications of this continued downward trend in industrial capacity utilization are concerning for the Argentinian economy, which faces challenges in boosting productivity and growth. The cooling economic climate and reliance on raw material production may hinder the recovery of industrial activity, ultimately affecting employment and economic stability. Policymakers may need to address these challenges by promoting strategies to enhance industrial productivity and support sectors that are still functioning above average capacity.