Argentina’s economic activity contracts less than expected in August

BUENOS AIRES (Reuters) – Argentina’s economic activity grew 0.2% in August from July and fell less than expected from a year ago in the South American country’s third straight month of year-on-year contraction, its official statistics agency said on Wednesday.

The grains-rich country’s economic activity fell 3.8% year-on-year, less than an estimated 4.9% drop by analysts in a Reuters survey.

Tough austerity measures by libertarian President Javier Milei, which have helped lower inflation and stabilize state finances, have also taken a toll on many sectors of the economy.

Construction had the steepest decline in August, contracting 17%, while the wholesale and retail sector and manufacturing fell 7.9% and 6.7% respectively.

Five sectors posted year-on-year growth in August, statistics agency INDEC said, notably fishing, which was up just over 17%, and mining, which grew 6%.

(Reporting by Hernan Nessi and Aida Pelaez-Fernandez; Writing by Brendan O’Boyle; Editing by Richard Chang)