National production decreased 0.82% in October of 2023

In October of 2023, the national production reduced 0.82% compared to the same month of the year 2022 due to the contractive performance of Agriculture; Manufacturing; Construction; Accommodation and Restaurants; Telecommunications; Financial and Services Provided to Companies. Meanwhile that the Fishing; Mining and Hydrocarbons; Electricity; Gas and Water; Commerce; Transportation; Storage and Courier; Services of Government and other Services sectors showed positive results.

The National Institute of Statistics and informatics (INEI) in the technical report National Production, also informed that during the period January – October of 2023, the economic activity of the country contracted by 0.65% and during the annualized period (November 2022-October 2023) in -0.27%.

The Agricultural sector reduced by 7.62% due to the negative performance of the agricultural subsector (-12.0%), due to the lower production volumes of Peruvian corn (-50.2%), tomato (-31.8%), oil palm (-29.2%), coffee (-21.9%), cacao (-12.9%), potato (-10.5%) and asparagus (-10.4%), before the lower levels of sowing and the adverse influence of the occurrence of the “Coastal El Niño”.

In addition, the livestock subsector contracted in 0.65% due to the lower volumes of caprine production (-2.4%), fresh milk (-1.5%), poultry (-1.4%) and eggs (-1.2%).

The Fishing sector grew 51.62% associated to the greater extraction of marine origin species (62.37%), mainly by the contribution of the fishing for indirect human consumption (anchovy for fishmeal and fish oil) by extracting 233 964 tons, compared with the 1,099 tons reported in October of the year 2022 showed a variation of 233 thousand additional tons. The capture of anchovy corresponded to the exploratory fishing of the resource (R.M. N° 354-2023-PRODUCE) and the Second Season of Fishing in the North-Center of the coastline (R.M. N° 358-2023-PRODUCE).

On the other hand, the fishing for direct human consumption increased by 3.64% due to the greater landing of species for frozen (44.7%); nevertheless, the landing of species intended for consumption in fresh state (-15.5%), preparation for curing (-44.7%) and preparation of canned (-48.0%). The fishing of continental origin increased by 7.81%, due to the greater capture of species in fresh state and for frozen.

The Mining and Hydrocarbons sector increased by 3.10% driven by the mining-metallic activity in 3.14%, given the greater volume of copper (2.1%), zinc (10.4%) and gold (10.0%) production among the main ones; with the contribution of the progress of the hydrocarbons subsector in 2.81%, over the base of greater volume of exploitation of crude petroleum (9.8%) and liquids of natural gas (4.3%).

During the tenth month of this year, the Manufacturing sector decreased 2.69% explained by the unfavorable result of the non-primary manufacture subsector (-5.84%); meanwhile, this result was mitigated by the increase of the primary manufacture subsector (9.14%). The contraction of non-primary manufacture subsector presented in the branches of the industry of intermediate goods (-8.60%) and the industry of consumption goods (-6.41%); meanwhile, the industry of capital goods increased (10.47%).

On the other hand, in the evolution of the primary subsector influenced the positive result of the branches of preparation and conservation of fish (121.8%) and fabrication of products of petroleum refining (19.9%); meanwhile, the branches of production of primary products of precious metals (-4.7%), production and preserving of meat (-0.2%), as well sugar processing (-0.5%) were affected.

During October of 2023, the Electricity, Gas and Water sector increased by 2.62% explained by the greater generation of electric power generation (2.74%), production of water (1.64%) and gas distribution (3.31%). In the electricity subsector increased the generation of thermoelectric (1.0%) and hydroelectric (1.7%) energy due to the presence of rains in the Peruvian center-south highlands. In addition, the generation of non-conventional renewable energy (27.7%) increased. The water subsector grew by the greater volumes of production of the companies EPS Grau (7.6%), Epsel (3.2%), Sedapal (1.9%), Seda Chimbote (0.2%) and Sedalib (0.1%).

The gas distribution presented a positive variation due to the greater demand of establishments of Vehicular Natural Gas in 15.4% and the greater distribution of the power generators 4.2%. Nevertheless, there was a lower distribution to the companies in -14.7%.

The Construction sector decreased by 9.06%, reflected in the lower domestic cement consumption (-8.68%) and the physical progress of public works (-10.36%). The reduction of domestic cement consumption was associated to the lower private investment in construction, as well as self-construction.

On the other hand, the contraction of the physical progress of public works was registered in the Local government level (-27.7%); nevertheless, the investment in the National (19,1%) and Regional (0.1%) government. By type of work, the progress of works related to basic services, the development of road infrastructure projects and construction of non-residential buildings. On the other hand, the works of risk prevention as retaining walls, embankments and defenses along the riverbanks were invigorated.

During October of this year, the Commerce sector increased in 1.36% due to the performance of the wholesale commerce (1.54%), due to the evolution of agricultural raw material; fuel, lubricants and allied products (dispatch to gas stations and retail service-centers; machinery and equipment for mining, sanitation, industry and health sectors. Also, in the non-specialized sale sector increased the commercialization of security cameras, equipment of personal protection and veterinary drugs.

The retail sale registered a variation of 1.79% due to greater purchase orders of electric components, agro-chemical products and security equipment; greater demand of fuels in gas stations and self-services centers; computers and communication equipment due to software update. On the other hand, the sale and repair of vehicles was affected (-1.84%).

The INEI informed that the Transportation, Storage and Courier sector increased by 0.09% driven by the transportation subsector (3.15%); meanwhile, the storage and courier subsector (-6.63%) contracted. In the growth of the transportation subsector contributed the positive performance of the air transportation (7.72%), both of passengers as well as cargo; also, the transportation by land and pipelines (1.75%) explained by the greater traffic of passengers by road (6.4%); the transportation by rail (2.5%) before the greater requirement of cargo and by transportation by pipeline (0.01%). In addition, the waterway transportation increased by 6.53% boosted by the transportation through the river.

On the other hand, the decrease of the storage and courier subsector was determined by the lower Service of the post and courier activities (-9.26%), as well as storage and activities of support to the transportation (-6.50%).

The Accommodation and Restaurants sector showed a decrease of 1.22% as a result of the lower activity of the restaurants subsector (-1.90%); nevertheless, the accommodation subsector grew (5.16%). In the result of restaurants subsector come into play the lower customer flow and the increase of the prices of dishes a la carte, linked to the Emergency State declared in several districts of Lima Metropolitan area and in the north of the country. According to classification of activity, the business of restaurants decreased in 5.7% such as those dedicated to meats and grills, cevicherías (seafood), pollerías (grilled chicken restaurants), restaurants, fast foods and chifas; among others. The same trend reported the beverage services (-0.7%) and catering (-6.2%). On the other hand, the activity of services of concessionaires (15.5%).

During October of this year, the telecommunications and Other Information Services sector reduced in 2.81%, influenced by the negative behavior of the telecommunication (-3.04%) and other information services (-1.26%) subsectors. In the behavior of the telecommunications subsector come into play the contraction of data transmission services (-22.7%), telephone services (-3.7%), as well as Internet services and subscription TV business.

On the other hand, the negative performance of the other information services subsector was explained due to the lower requirement of publishing activities (-8.8%) and computer programing (-1.3%). On the other hand, the activities of production and projection of films and TV programs, increased (8.2%); as well as television and radio programming (1.1%).

During October of this year, the Financial and Insurance sector decreased by 8.34% due to lower credits (-6.51%) and deposits (-4.96%) of multiple banking. According to destination segment, the credits targeted to big, medium, small and micro-corporations (-11.9%) decreased; meanwhile the consumption credits (6.2%) and the mortgage credits (0.5%) increased.

By economic sectors, there were channeled lower credits to commerce; manufacturing; agriculture; livestock hunting and forestry activities; also, business activities, entrepreneurial and renting; electricity, gas and water; as well as transportation, storage and communications.

On the other hand, the decrease of deposits of multiple banking, was registered in the headings of deposits of Compensation for Time Service (-18.2%), savings deposits (-17.5%) and demand deposits (-10.7%); meanwhile the fixed term deposits grew (17.9%).

The Services Provided to Companies sector contracted by 1.04% due to the lower activity of travel agencies and tour operators (-10.8%), professional, scientific and technical activities (-1.6%) and activities of administrative and support services (-1.0%). Nevertheless, advertising and research market services grew (5,6%).

Therefore, travel agencies and tour operators reported a lower demand of air tickets, tourist packages, organization of travels, reservations and business trips. The professional, scientific and technical activities showed a lower level of investment in engineering projects, civil construction services and mining, reduction of public and private works, lower consultancies and advisories. The activities of administrative and support services were affected by the lower renting of machinery, general cleaning services in buildings, temporary works, placement of professional and technical employment as well as services of telephone exchanges.

In the other hand, the advertising and market research by trademark design, logos, launching of campaigns through traditional media (TV, radio, newspapers, panels and promoters) and of digital interaction in WEB portals and social media.

During October of this current year, Government Services increased by 3.25%, as a result of the greater activities performed by the entities such as Public Administration (3.2%), Defense (3.4%) and other services of the government (3.3%).