Retail sales in Argentina fell 2.7% in August compared with July, driven by household debt, rising utility rates and stagnant wages, according to the latest survey by the Argentinian Confederation of Medium-Sized Enterprises (CAME).
Year-on-year, the commercial sector contracted 0.2% compared with the same period in 2025, accumulating a drop of 2.4% so far in 2026. Food and beverages fell 2.5% year-on-year, while pharmacy sales contracted 0.5%, making them the hardest-hit sectors in the survey.
CAME said reduced household resources after the vacation period forced consumers to concentrate purchases only on essential goods. The slowdown hit basic sectors hardest, placing consumption in a scenario of generalized recession within the domestic market. Three of the seven sectors surveyed showed year-on-year declines.
Among merchants surveyed, 47.4% reported activity levels similar to the same period last year, while 46.5% reported worsening sales, up two percentage points from 44.5% in July. Only 6.1% perceived improvements.
Looking ahead 12 months, 42.8% of business owners said they expect their economic situation to improve, 43.9% expect no change, and 13.3% anticipate further deterioration. A separate 57.9% said now is not an appropriate time to invest in their business.
CAME spokesperson Salvador Femenía questioned the official narrative on consumer credit weeks earlier, telling Radio Rivadavia that “families are going into debt to eat,” rejecting the idea that financing is being used for luxury goods. He attributed the stagnation to a lack of state incentives to reactivate the national economy.
Author: vmmh
Source: agencies
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