Colombia’s Manufacturing Production Shows Signs of Recovery in July

Colombia’s real manufacturing production grew by 2% in July 2024 compared to the same month last year, according to the latest Monthly Manufacturing Survey with Territorial Focus released by the National Administrative Department of Statistics (DANE). The survey captures monthly shifts in the manufacturing sector across production, sales, and employment variables.

Out of the 39 industrial activities surveyed, 22 reported positive growth in real production. The strongest increases were seen in the basic iron and steel industries (41.5%), rubber products manufacturing (39.7%), and the production of other types of transportation equipment (30.4%).

Lorenzo Castillo Barvo, acting Vice Minister of Business Development, attributed these results to the national government’s economic recovery program, which emphasizes reindustrialization. Castillo stated that manufacturing is a key sector in the transition to a more sustainable economy driven by science, technology, and knowledge.

Despite these improvements, year-to-date manufacturing production remains down by 2.9%. However, July’s 2% growth marks the most significant recovery in the past 12 months. Industrial sales also grew by 0.7% in July, the second-highest monthly gain over the past year. Employment in the sector, while down 0.9% from last year, saw its smallest decline in 12 months.

The Ministry of Commerce, Industry, and Tourism says that it has continued to invest in initiatives aimed at strengthening the country’s business landscape to foster greater economic opportunities, particularly for the manufacturing sector.

Regional Performance

Of the 14 departments included in the survey, 10 recorded positive production growth. Córdoba led with a 36.5% increase in production and a 9.6% rise in sales in July. Risaralda and Valle del Cauca also showed notable growth, with production increases of 10.1% and 4.3%, respectively.

Among metropolitan areas, Valle de Aburrá (Metropolitan Medellín) contributed the most to the annual increase in real production, registering a 1.7% rise.

The manufacturing sector’s July gains reflect ongoing efforts to stabilize and stimulate industrial production across regions, though the overall year-to-date results remain mixed.