Uruguay’s industrial output contracted by 3.5% year-on-year in May 2026, reversing a 4.0% increase in April and marking the steepest decline since October 2025. The downturn was led by a 4.5% drop in food manufacturing, while motor vehicle production plunged 41.2% and chemicals output fell 12.2%. In contrast, several segments recorded robust gains: paper manufacturing expanded 15.0%, beverage production rose 16.9%, and electrical equipment manufacturing surged 29.1%. Labor indicators also deteriorated, with hours worked in the industrial sector down 6.1% from a year earlier and the occupied personnel index—an indicator of industrial employment—declining 2.1% year-on-year.