BOGOTA (Dow Jones)--Industrial production in Colombia rose an estimated 6.4% in the first half of the year compared with the same period last year, according to a private-sector survey of industrialists released Thursday.

Industrial sales in the first six months of the year were up 6.2% on the year, propelled by transportation items such as cars and their engines and domestic appliances, the National Association of Industrialists, known as ANDI, said.

The industrial production figure is lower than the 14% increase reported by the statistics department Friday.

According to ANDI, 21 of the 25 industrial sub-sectors registered an increase of production, while 22 of 25 industrial sub-sectors registered an increase of sales in the first half of the year.

Production of cars and their engines led the industrial sector, jumping 50% in the year, while output of domestic appliances expanded 40%.

In June, factories were running at an average of 82.5% - the same average as in the past 12 months - ANDI added.

A total of 71% of industrialists said their businesses are running well.

In addition, 76.5% of the industrialists said their companies work 24 hours a day with three to four shifts.

Nevertheless, business owners expressed concern about the exchange rate, uneven demand, low levels of profitability and smuggling.

The Colombian peso has appreciated 4.9% so far this year, affecting mainly nontraditional exporters - many of which have been forced to cut thousands of jobs.

-By Diana Delgado, Dow Jones Newswires; 571-6001980; diana.delgado@dowjones.com
(END) Dow Jones Newswires
August 23, 2007 16:09 ET (20:09 GMT)