According to data from statistics institute INDEC released on Friday, the sector grew by 0.9% month-over-month — the second consecutive monthly increase — and by 2% year-over-year. However, this improvement was not enough to offset the decline at the start of 2026, as manufacturing output fell by 2.2% in the first half of the year. This situation also affected the construction sector, an industry that relies heavily on industrial manufactured goods. A report released on Friday stated that sector activity had fallen 4.1% month-over-month in June, although it remained 4% above the same period last year. Until these three variables improve again, Casas added, manufacturing and construction will likely “continue to alternate between gains and setbacks.”