Colombia PMI November 2022

Colombia

Colombia: Manufacturing PMI drops to lowest since May 2021

December 1, 2022

The S&P Global Manufacturing Purchasing Managers' Index (PMI) fell to 47.3 in November from October's 50.0. November's result marked the weakest reading since May 2021. As a result, the index moved below the 50.0 no-change threshold, signaling a deterioration in business conditions from the previous month.

The fall of the manufacturing PMI into contractionary territory came as both output and new orders fell at the fastest paces in 17 months. This, in turn, led to employment declining at the speediest rate since June 2021 and input purchases at the quickest rate in nearly a year and a half. Looking at prices, input inflation sped up compared to the prior month, while output inflation slowed to the weakest rate in 20 months. Meanwhile, business sentiment fell to the lowest level since April 2020—when the global economy was in the grip of the first Covid-19 outbreak.

Chief economist at Davivienda, Andrés Langebaek Rueda, explained the deterioration:

“The increase in inflation, the acceleration of the devaluation, the inevitable increase in the interest rate by the Banco de la República, the increase in uncertainty and a weak external sector demand explain the strong adjustment that we are observing.”

LatinFocus Consensus Forecast see fixed investment growing 1.3% in 2023, which is down 0.2 percentage points from last month’s estimate, and 3.1% in 2024.


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Colombia PMI November 2022

Note: Seasonally-adjusted Purchasing Managers' Index. Readings above 50 indicate an overall increase compared to the previous month and readings below 50 an overall decrease.
Source: Davivienda and S&P Global.


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