Colombia Industrial Acitivty Falls Most Since 2025

Colombia’s industrial production declined 2.3% year-on-year in July 2026, marking the sharpest decline since April 2025 and reversing a 4.1% gain in the previous month. The reading was well below market expectations of a 0.4% contraction, as production declined in 27 of 32 industries, including the manufacture of clothing (-14.1%), processing of meat (-8.1%), basic iron and steel (-12.6%), spinning, weaving and finishing of textiles (-17.9%), and cocoa, chocolate and confectionery (-19.2%). Meanwhile, output rose in the manufacture of soaps and detergents (8.8%) and beverages (2.3%). Real sales declined 1.8%, while employment also fell 1.4%.

Colombia’s industrial production rose 4.1% year-on-year in June 2026, rebounding from a 0.4% decline in May and beating forecasts of 2.1%. Of the 39 industrial activities covered by the survey, 24 recorded positive changes. The largest increases were recorded in the manufacture of other transport equipment (22.0%), motor vehicle bodies and trailers (19.2%), luggage, handbags and similar leather goods (16.2%), motor vehicles and their engines (16.5%), and beverages (15.3%). Real sales rose 3.9%, while employment fell 1.1%.

Colombia's industrial production fell 0.4% year-on-year in May 2026, reversing a 2.0% increase in the previous month and defying expectations of a 1.3% expansion. This marks the first decline following four consecutive months with increases, as output declined in 25 of the 39 industrial categories. The largest decreases were recorded in the processing and preserving of meat, fish, crustaceans, and molluscs (-10.7%), manufacture of apparel (-11.3%), spinning, weaving, and finishing of textiles (-20.8%), basic iron and steel industries (-10.6%), and manufacture of cocoa, chocolate, and confectionery (-18.1%). Offsetting part of the decline were gains in the manufacture of beverages (9.1%), sugar and unrefined cane sugar (62.1%), and soaps and detergents (5.7%). Meanwhile, industrial employment continued to contract, with the decline widening to 1.0% year-on-year in May from 0.9% in the previous month.