Colombia: Manufacturing PMI rises in May but remains contractionary
The Davivienda Colombia Manufacturing Purchasing Managers’ Index (PMI) improved to 49.8 in May from 49.2 in April. As a result, the index edged closer to the 50.0 no-change threshold, signaling a softer deterioration in manufacturing-sector operating conditions compared to the previous month.
May’s PMI reading chiefly reflected a slower reduction in new orders and production, in part supported by competitive pricing strategies. That said, delivery times increased amid heavy rains and disruption to transport. In addition, firms shed staff at a faster clip compared to April amid still-subdued demand conditions.
Regarding prices, input cost inflation accelerated, though it remained moderate by historical standards. That said, manufacturers continued to cut selling prices in an effort to deplete excess stock amid client requests for discounts. Lastly, business confidence fell to a 16-month low due to economic and political concerns, a subdued outlook for demand and profit worries.