Colombia Industry July 2016

Colombia

Colombia: Industrial production shrinks for first time in 14 months in July

September 16, 2016

Industrial production unexpectedly shrank 6.2% annually in July, which contrasted the 6.7% increase seen in June. The contraction—the first in 14 months—was the result of a 45-day trucker strike that ended on 22 July. According to DANE, July’s reading reflected decreases in 36 out of the 39 components of the index. A steep drop in the production of beverages was largely behind July’s decline. Despite the disappointing reading, the industrial sector is expected to rebound quickly as the effects of the strike fade and the peso remains relatively weak.

As a result of this month’s dismal print, the 12-month trend now points downward as annual average growth in industrial production fell to 3.8% in July from 4.4% in June.

Panelists surveyed for this month’s LatinFocus report expect industrial production to expand 5.4% in 2016, which is down 0.4 percentage points from last month’s forecast. For 2017, the panel expects industrial production to increase 3.7%.


Author:, Economist

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Colombia Industry July 2016 0

Note: Year-on-year changes of industrial production and annual average growth rate in %.
Source: Colombia National Statistical Institute (DANE) and FocusEconomics calculations.


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