Tuesday, 02 January 2024 12:17 GMT

Colombia's July Industry Growth Rests On Coffee And Transport Surge


(MENAFN- The Rio Times) Colombia's manufacturing industry posted clear gains in July, but the numbers show strength concentrated in only a few areas. Official data from DANE, the national statistics agency, reported that manufacturing output rose 5.8 percent compared with July 2024.

Real sales increased 6.4 percent, while employment edged up just 0.9 percent. The headline growth looks broad, yet most of it came from two activities. Coffee threshing rose 66.2 percent and“other transport equipment” climbed 49.7 percent.

Together they carried production, sales, and hiring. Out of 39 activities measured, 32 increased output, but seven declined, confirming how uneven the expansion remains.

The background explains the numbers. Colombia 's National Coffee Federation reported that July coffee production reached 1.37 million 60-kilogram bags, the highest July in a decade. That volume was 18.5 percent higher than a year earlier.

Stocks rose to 988,000 bags as the harvest swelled supply, while total production for January to July reached 7.59 million bags. Over twelve months, output stood at 14.6 million bags. These flows boosted processing, packaging, and transport.



Other regions also felt the lift. Eleven of fourteen departmental areas tracked by DANE posted higher output in July. Antioquia, Caldas, Córdoba, Cauca, and Bogotá contributed most.

That shows how coffee and related activities feed into local factories, warehouses, and jobs. Yet the modest 0.9 percent increase in national employment highlights a cautious hiring mood.

Year-to-date numbers are less striking. From January through July, industrial production rose only 1.9 percent, sales 2.0 percent, and employment 0.3 percent. Over twelve months, output grew 0.7 percent, sales 0.8 percent, and employment stayed flat.

These figures show how narrow July's rebound really was. Behind the story lies a mercantile fact: one harvest cycle and a handful of transport orders carried an entire sector's monthly statistics.

Colombia sold and processed more tangible goods because more coffee reached mills and exporters at once surge lifted factories and boosted regional sales, but it does not yet signal a broad industrial boom.

For international readers, the message is clear. Coffee remains central to Colombia's economy, capable of swinging national industrial data when production peaks. Transport and logistics firms benefit, but other industries remain sluggish.

Investors, suppliers, and policymakers should watch whether coffee strength continues or fades. Without new drivers, the strong July performance may prove temporary.

This snapshot comes from Colombia's official statistics agency DANE and the National Coffee Federation. It reflects a measurable but narrow industrial upswing anchored in coffee and transport, not across the board growth.

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