The Automotive Association of Peru (AAP) indicated that the national production registered a new increase in July, after reviewing the information of the National Institute of Statistics and Informatics (INEI). In that sense, an increase of 4.41% was observed in the automotive trade in said month.
The statistical entity reported that local economic activity reported a growth of 1.41% in the seventh month of 2022, compared to July of the previous year and setting the lowest variation of the year and well below what was expected by the market (2.7%) .
“The performance was driven by the lodging and restaurants, transport and storage, commerce, manufacturing, construction and other services sectors. However, other important productive sectors showed contraction such as mining and hydrocarbons, finance and insurance, telecommunications and agriculture. the AAP reported.
According to the main components of domestic demand, investment in construction registered an increase of 2.14% and household consumption, reflected in retail sales, presented a variation of 0.83%.
On the other hand, the external demand for non-traditional products grew by 6.59%, including agricultural, textile, chemical, metalworking and non-metallic mining.
In this way, so far in the January-July 2022 period, national production advanced 3.22% compared to the similar period in 2021, while, during the last twelve months, August 2021 – July 2022, an increase of 4.54 was observed. % at annual rate. Finally, the seasonally adjusted index of national production for July registered a decrease of 0.79% compared to the immediately previous month.
When disaggregating the information by economic sector, “The expansion of the trade sector is noted at 2.85% year-on-year last July, of which retail trade grew 0.83%, wholesale trade grew 3.48% and automotive trade grew 4.41%”, said the automotive union.
Regarding this last subsector, he explained that the result is due to the greater commercialization of light vehicles (off-road trucks, pick-up trucks, vans, automobiles) and heavy vehicles (trucks, tractor-trailers, minibuses and buses), given the demand for some sectors and the support of advertising campaigns.
However, the union indicated that the sale of parts, pieces and accessories for motor vehicles decreased, due to logistical problems at the international level; the maintenance and repair of motor vehicles decreased due to the termination of contracts and lower demand for repair services. The sale, maintenance and repair of motorcycles and their parts, pieces and accessories also decreased.
For the AAP, the result of last July confirms that national production has been slowing down its growth, on the one hand, due to the fact that the statistical effect of the low comparison base continues to dissipate and, on the other, the lower dynamism that domestic demand would be registering. during the beginning of the second semester of this year compared to the first.
Likewise, the increase in economic activity recorded to date has been driven by lagging sectors such as accommodation and restaurants, and transport, storage and messaging, as can be seen in the following graph.
Finally, the AAP specified, important sectors such as mining and hydrocarbons, as well as finance and insurance, have been contributing negatively to the composition of the growth of the Peruvian economy.
“The latter would be linked to the increase in social conflict throughout the country, which has been poorly attended by the authorities; the high level of uncertainty and risks regarding the future of the country, which is reflected in worse conditions for private investment, as well as for the delivery of financing to companies; and the slowdown in the world economy, which would weaken the demand for our products abroad, mainly metals”sentenced.
