WRAPUP 1-Argentine factory output soars, stokes brisk growth

* GDP rises 8.6 percent on year, 0.4 percent vs Q2

* Nov industry surges 12.8 pct on year, 3.9 pct vs Oct

By Helen Popper

BUENOS AIRES, Dec 17 (BestGrowthStock) – Argentine industrial
output surged last month, stoking sustained economic growth
that clocked 8.6 percent in the third quarter — one of the
Latin America’s briskest rates, data showed on Friday.

Confirming a figure given earlier in the week by President
Cristina Fernandez, the INDEC national statistics agency said
industrial production rose 12.8 percent in November (ARIO=ECI: )
and also climbed 3.9 percent from the preceding month.

Fueled by the car industry and steel production, November’s
figure marks the quickest rate of year-on-year expansion in
almost three years.

That far exceeded expectations in a Reuters poll, which
gave a median outlook for an increase of 8.2 percent.

Gross domestic product which is only reported quarterly in
Argentina, rose 8.6 percent in the third quarter from the same
three-month period a year earlier and also edged up 0.4 percent
from the second quarter, INDEC said.

However, that marks a slowing of the pace of expansion in
the second quarter, which clocked 11.8 percent year-on-year.

Such rates of growth in Latin America’s No. 3 economy have
boosted investor appetite for the country’s GDP warrants —
securities that are tied to economic growth.

It is also good news for the center-left Fernandez just 10
months from a presidential election in which she could seek a
second term. Fernandez highlights industrial activity as a
motor of the country’s rebound.

Argentine industry is getting a boost from strong
automobile sales to neighboring Brazil.

Auto output (ADEFA02: ) rose 36 percent in November
year-on-year and Argentine carmakers are seen producing a
record number of vehicles this year, according to the ADEFA
carmakers’ association. For more see [ID:nN03214574].

Analysts say further investments will be needed for
industrial output to continue growing strongly in the medium
term as some sectors are working near maximum production

Longer-term prospects for local industry are clouded by
high inflation — estimated by private forecasts at more than
25 percent this year — and surging wage demands by trade
unions that eat into the Argentine peso’s competitive edge over
key trade partners such as Brazil.
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WRAPUP 1-Argentine factory output soars, stokes brisk growth