Uruguay Industrial Production Slows in July

Uruguay’s industrial production rose 4.2% year over year in July 2026, following a 5.4% increase in June. The growth was driven primarily by a 10.5% rise in food products manufacturing, followed by pharmaceutical products, which increased 7.0%, and paper and paper products, which rose 6.4%. The division with the largest negative contribution to the year-over-year change in industrial output was beverage manufacturing, which slumped 32.4%. Meanwhile, the Index of Hours Worked by Workers increased 2.6%, while the Employment Index declined 0.1%. On a monthly basis, industrial production fell 1.0% in July.

Uruguay's industrial production rose 5.4% year-on-year in June 2026 after falling 3.5% in the previous month, marking a strong rebound in manufacturing activity. The increase was driven primarily by a 7.8% rise in food products manufacturing, which contributed 3.2 percentage points to overall growth. Other food products manufacturing increased 6.3%. On a seasonally adjusted basis, industrial output climbed 8.0% month-on-month. Meanwhile, hours worked in the industrial sector rose 0.3% from a year earlier, while industrial employment declined 3.0%. On a year-to-date basis, industrial production increased 2.9%, while hours worked and employment fell 1.7% and 1.9%, respectively.

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.