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.
Author: Luis Lopez Vivas, Economist