Argentina says economic activity drops 0.2 pct in May

jueves 24 de julio de 2014 15:06 GYT

BUENOS AIRES, July 24 (Reuters) - Argentina's economic activity index fell 0.2 percent in May compared with the same month a year ago, the INDEC statistics agency said on Thursday, in a sign Latin America's No. 3 economy is continuing to grapple with recession.

The data marked the third consecutive fall in the monthly EMAE economic activity index, which is a close proxy for gross domestic product. The INDEC revised its April year-on-year figure down to a fall of 0.7 percent from an originally-reported slide of 0.5 percent.

A decline in industrial output and weakness in consumption is hurting the economy, which risks tumbling into a debt default next week if it fails to reach a deal with holdout investors suing the country for full repayment of their bonds.

The median forecast in a Reuters poll of economists had been for a fall of 1.2 percent. Activity rose 0.5 percent on the month, INDEC said. (Reporting by Sarah Marsh; Editing by Meredith Mazzilli)