Colombia: Manufacturing PMI climbs in January
February 3, 2020
Business conditions in Colombia’s manufacturing sector started the new year in full swing, with the seasonally-adjusted Davivienda manufacturing Purchasing Managers’ Index climbing to 53.4 in January from 52.4 in December. Thus, it marked the best reading in a year and a half, and the seventh consecutive month that the index remained above the critical 50-threshold which indicates an improvement in the health of the sector.
January’s print largely reflected buoyant growth in new work intakes, which rose at the fastest clip since August 2018 amid more upbeat demand and overall improved conditions in the economy. As a result, production increased at the quickest pace in 17 months, while firms increased their staffing levels for the seventh month straight to cope with added workloads. Meanwhile, business confidence rose to its highest level in six months, bolstered by prospects of investment and export opportunities as well as resilient demand dynamics in the year ahead. On the price front, input cost inflation softened to a ten-month low in January, while output charge inflation also moderated.
Author: Hanna Andersson, Economist