Colombia: Manufacturing PMI dips in August
Business conditions in Colombia’s manufacturing sector continued to improve in August, albeit to a lesser degree than in July. The seasonally-adjusted Davivienda manufacturing Purchasing Managers Index dipped from 51.5 in July to 50.9 in August. Despite the drop, the index remains above the critical 50-point threshold separating expansion from contraction.
Softer growth of output and employment, coupled with a fall in new orders were largely behind August’s slip. Production rose only slightly, while new factory orders declined, albeit marginally, amid subdued demand at home and abroad in the surveyed month. In addition, although employment continued to increase, the pace of job creation softened from July. On the price front, input cost inflation slid to a four-month low, while output charges rose modestly. Lastly, despite falling from July, business sentiment remained strong, underpinned by a positive outlook over increased exports and an improvement in demand conditions ahead.