Colombian Manufacturing Falters as Key Sectors Struggle in Early 2025

Colombia’s manufacturing sector, according to official DANE data, continues to face headwinds as 2025 unfolds. In February, manufacturing output dropped 1.2% compared to the same month last year.

Real sales fell 0.4%, while employment in the sector edged up by just 0.1%. These figures show a sector that remains under pressure, with only a few bright spots. Seventeen of 39 industrial activities posted negative production growth, subtracting 3.8 points from the overall result.

The remaining 22 activities added 2.5 points. Coffee milling led the gains with a 62.9% surge in production and a 56.6% jump in sales. Other transport equipment manufacturing and confectionery also grew, but these gains could not offset sharp declines elsewhere.

Automotive manufacturing shrank 34.4%, and leather tanning fell 21.5%. Vehicle body and trailer production dropped 16.3%. Sales in these sectors mirrored the production slump, with vehicle body sales down 45.6% and leather tanning sales down 22.7%.

For January and February combined, production grew 0.3% and sales rose 0.6%, but employment slipped 0.1%. Over the past twelve months, production fell 1.5%, sales dropped 1.4%, and employment declined 0.7%.

Twenty-eight industrial activities posted negative results, while only eleven grew. Persistent weak demand, high input costs, and currency pressures continue to weigh on the sector.

Retail sales, by contrast, rose 7% in February, showing a shift in consumer demand. The manufacturing sector’s struggle highlights ongoing structural challenges and the need for greater competitiveness and investment

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