Colombia: Manufacturing PMI drops in February but remains in expansionary territory
The seasonally-adjusted Davivienda manufacturing Purchasing Managers’ Index (PMI) dropped to 50.2 in February following January’s 53.3, which had marked the highest reading since July 2020. Nonetheless, the PMI landed above the 50-threshold, indicating a marginal improvement of operating conditions in the manufacturing sector.
February’s downturn was chiefly driven by a slide in output and contracting new orders—the steepest since August 2020—as uncertainty regarding the pandemic and ongoing restrictions subdued client demand. That said, employment revels rose over the previous month, while manufacturers grew more optimistic as regards output in the coming year. Lastly, on the price front, despite firm foreign demand and raw material shortages, input cost inflation edged down to a four-month low.
Andrés Langebaek Rueda, chief economist bolivar group at Davivienda, noted:
“In contrast to what happened in January, when the PMI increased, in February industrialists had to paralyse some of their activities as a result of a drop in orders and new restrictions on mobility. However, the consumer confidence index measured by Davivienda strengthened in February, reaching levels well above those seen in January and suggesting that the latest weakness might prove to be just a blip.”