Business activity in commerce and services sectors declines in Uruguay

RIO DE JANEIRO, BRAZIL – The latest economic study on the commerce and services sector activity in Uruguay reveals that sales corresponding to the second quarter of the year recorded a 1.3% between both industries year-on-year drop. However, the decline is much less pronounced than in previous quarters.

In the specific analysis of sales in the commerce sector, the document developed by the Chamber of Commerce and Services of Uruguay (Ccsuy) confirms that these recorded a year-on-year contraction of 3% from April to June 2021.

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The index also details that the fashion industry stands out among the best performing sectors after a survey of 18 companies in the apparel sector, for a total of 35 premises and an employed staff of 114 people.

Expressly, 50% of the fashion companies surveyed indicated that their sales increased by 29%, a figure higher than the previous quarter, which stood at 21%.

As for the sector’s expectations, Ccsuy shares that these showed a new drop compared to the last measurement, although they remained at very optimistic levels. In this line, 67% of the apparel companies expect that profitability in the next 12 months will be “Better” or “Much better” than the current profitability.

Likewise, according to the entity, short-term expectations improved with respect to the first quarter and were in the “optimistic” zone, with 65 points; this result is 22 points higher than the one observed at the end of the first three months of the year.

Finally, 47% of the apparel companies expect turnover to remain stable in the third quarter, while 41% expect it to increase and the remaining 12% expect it to decrease in the third quarter.

Founded in 1867, the Uruguayan Chamber of Commerce and Services is the oldest business entity in the South American country, representing a sector that comprises 85% of Uruguay’s companies and employs almost one million workers.

According to Ccsuy, the commerce and services sector represents 57% of total employment in the country and 54% of the GDP of the national economy.

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