Fox Business - Latest News - Argentina's July Auto Output Up 24% on Month; Down 6.7% on Year

Argentina's July Auto Output Up 24% on Month; Down 6.7% on Year

Argentina's automobile industry produced 65,900 vehicles in July, a decrease of 6.7% from a year earlier due to a drop in car exports, according to an industry trade group.

Production surged 24% from June, auto-maker association Adefa said Friday.

Vehicle output during the January-July period fell 14% on the year to 397,698 units.

Recent economic data point to an abrupt slowdown in Argentina's economy, which most economists attribute to double-digit inflation on a percentage basis and sluggish demand for Argentine manufactured goods in neighboring Brazil. The economy is expected to expand by 3.1% this year after expanding by 8.9% in 2011, according to a recent central bank survey.

Exports totaled 28,483 vehicles in July, down 38% on the year and a 4.7% decrease from June. Exports in the January-July period fell 30% on the year to 201,955 units.

Brazil was the destination for about 79% of exports in the seven-month period, followed by Europe with 8.6%, and Colombia with 2.9%.

Write to Ken Parks at ken.parks@dowjones.com

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