SNI: Peruvian industry accumulates a growth of 1.9% between January and May 2024

In May, the industry was the sector that made the greatest positive contribution to national GDP.

Following the double-digit rise of the Peruvian industry during the month of April, the sector grew significantly again in May 2024, recording an increase of 18.6%. This figure constitutes the highest monthly growth since April 2018 (not considering 2021 for the post-pandemic period), reported the Institute of Economic and Social Studies (IEES) of the National Society of Industries (SNI).

In this sense, with the favorable performance of the industry in April and mayothe sector has accumulated growth of 1.9% in the first five months of 2024, as a result of the great progress of the primary subsector (8.3%), as well as the non-primary sector, the one with the highest level of transformation and job creation, which grew by 0.1%.

Regarding the May indicators, the SNI’s IEES also highlights that, thanks to the rise in industry during that month, the sector contributed 1.9 percentage points to the GDP, ranking as the economic activity that contributed the most to the national economy, whose growth was 5% in the fifth month of the year.

Non-primary industry in May 2024

Although the industrial performance in May was mainly due to the positive performance of the primary manufacturing subsector (+76.5%), the non-primary component also contributed to this growth with an increase of 1.1%, marked by the favourable performance of consumer goods (+3.5%) and capital goods (+49.8%). In contrast, the production of intermediate goods experienced a decline (-2.1%).

Consumer goods

According to the IEES, in the production of consumer goods, the increase in furniture manufacturing stood out, with 24.7%, due to the greater demand for wooden furniture for the local and foreign markets. The production of clothing also stood out, except for leather garments (21.2%), due to the greater demand in the manufacture of dresses, T-shirts, pajamas, skirts, Bermuda shorts, shorts, polo shirts, jumpsuits, clothing sets, shirts and pants for the domestic market.

The production of pharmaceutical products, medicinal chemicals and botanical products for pharmaceutical use also increased by 17.4%, due to a greater production of medicines (antibiotics and vitamins) for the domestic and foreign markets.

In contrast, there was a contraction in the production of bakery products (-9.3%) due to the lower use of inputs for the preparation of products such as biscuits for domestic consumption. Footwear manufacturing also fell (-36.9%) due to lower production of sneakers, sandals, boots, ankle boots and shoes for the local market and for export.

Capital goods

Regarding capital goods, there was a 152.3% growth in the manufacturing of machinery for mining and quarrying, as well as for construction works, due to the increased production of drilling machines, loaders, and graders for both the domestic market and for export.

Likewise, the production of motor vehicles increased by 133.3%, associated with the increased production of light and heavy vehicles for the domestic market. On the other hand, the production of motors, generators and electric transformers and electrical energy distribution and control devices decreased by 14.1%, due to the lower production of electric transformers and electricity distribution boards for the domestic market.

Intermediate goods

The manufacture of intermediate goods fell in May, and among the industrial branches that decreased were the manufacture of metal products for structural use (-12.2%) due to lower production of scaffolding, formwork, shoring or bracing material for cast iron or steel; as well as the manufacture of clay construction materials (-24.7%) in response to lower production of bricks and ceramics for the local market.

However, the activities in this manufacturing sector that grew the most were the manufacture of plastic products (up 5.2%), due to the increased production of semi-manufactured products such as tableware and tableware and kitchen items. Also the cutting, carving and finishing of stone (up 244.6%), due to the increased production of natural or agglomerated slate for the domestic market.

On the primary industry

As noted above, the dynamism achieved in the fifth month of the year is mainly the result of the performance of the primary fishing industry, which grew by 651.1% in the month of analysis, explained by the greater catch of anchovy and other species destined for the production of fishmeal and fish oil. Thus, this industrial sector contributed 17.1 percentage points of the growth of the national industry in May (+18.6%).