Colombia Industrial Output Below Expectations

Industrial production in Colombia rose 2.0% year-on-year in April 2026, slowing from a 3.9% increase in March and falling short of market expectations for a 3.0% gain. Growth was driven by higher output in beverage manufacturing (5.8%), sugar and panela production (40.1%), transport equipment manufacturing (33.7%), and coking, petroleum refining, and fuel blending (5.7%). Limiting the overall increase, production declined in several sectors, including basic chemicals and chemical products (-12.1%), cocoa, chocolate, and confectionery (-21.9%), paper, cardboard, and paper products (-6.3%), and meat processing and preservation (-5.8%). Meanwhile, employment fell 0.9% in April, deepening from a 1.0% decline in March and marking the weakest reading in eleven months.

Industrial production in Colombia rose 3.9% year-on-year in March 2026, up from 1.4% in February and well above market expectations of a 1.8% gain. Marking the highest level in 6 months, the expansion was driven by gains in beverage manufacturing (16.7%), pharmaceutical products, medicinal chemicals manufacturing (17.1%), petroleum refining, and fuel blending (6.9%), food processing (10.5%) and transport equipment (32.9%). In contrast, production declined for manufacture of paper, cardboard, and their products (-7.3%), manufacture of basic chemicals and their products (-9.1%) and spinning, weaving, and finishing of textiles (-15%). Meanwhile, retail sales increased 3.8% while industrial employment declined 0.6%.

Colombia’s industrial production grew 1.4% year-on-year in February 2026, a sharp reversal from the 0.5% decline in January and beating market expectations of 0.6%. The expansion was driven by a stronger performance across sectors, with 20 out of 39 industrial activities posting growth. Significant increases were recorded in motor vehicles (26.0%), petroleum refining (11.9%), beverage manufacturing (7.7%), pharmaceutical products (9.2%), and transport equipment (22.0%). In contrast, several sectors faced challenges, including iron and steel (-20.5%), basic chemicals (-11.6%), coffee threshing (-38.5%), and cacao and chocolate (-21.9%). Meanwhile, retail sales declined 2.5% and industrial employment fell 0.4%, reflecting that while production has regained momentum, consumer demand and labor market recovery still face significant headwinds in the current economic environment.