Uruguay Industrial Production Contracts in May

Uruguay's industrial production fell 3.5% year-on-year in May 2026 after rising 4.0% in the previous month, marking the sharpest decline since October 2025. The contraction was driven primarily by a 4.5% drop in food manufacturing. Other major drags included motor vehicle manufacturing, which fell 41.2%, and chemicals production, down 12.2%. On the upside, paper manufacturing rose 15.0%, beverage production increased 16.9%, and electrical equipment manufacturing climbed 29.1%. Hours worked in the industrial sector declined 6.1% from a year earlier. Industrial employment also weakened, with the occupied personnel index falling 2.1% year-on-year.

Uruguay’s industrial production increased 4.0% year-on-year in April 2026, easing from a 9.4% expansion in the previous month. Growth was driven by strong gains in pharmaceutical manufacturing (21.6%), rubber and plastic products (25.2%), and food production (1.7%). On the downside, output declined in motor vehicles (-15.9%), machinery and equipment (-36.4%), and chemical products (-4.2%). Meanwhile, labor market indicators remained weak, with the hours worked index falling 3.2% year-on-year and the occupied personnel index declining 1.5%. In the first four months of 2026, industrial production rose 3.9% compared with the same period a year earlier.

Uruguay's industrial production jumped 9.4% year-over-year in March 2026 following a 3.3% rise in February. Food manufacturing led gains with a 13.2% increase, followed by chemicals and chemical products manufacturing at 28.0% and motor vehicles, trailers and semi-trailers manufacturing at 31.0%. In contrast, beverage manufacturing posted the largest decline at 10.5%, followed by paper and paper products manufacturing (-2.3%) and computer, electronic and optical products manufacturing (-17.1%). The Index of Hours Worked rose 2.1% year-over-year, while the Index of Employed Personnel fell 1.6%.