Colombia PMI October 2021

Colombia

Colombia: Manufacturing PMI eases in October; conditions still improve

November 2, 2021

The seasonally-adjusted Manufacturing Purchasing Managers' Index (PMI)—produced by IHS Markit and Davividenda—fell to 54.0 in October from 55.5 in September, which had marked the second-highest reading on record. Consequently, the index moved closer to the 50-threshold, signaling a slower—albeit still-strong—improvement in business conditions compared to the previous month.

October’s slowdown came on the back of moderating output growth, largely owing to raw material shortages. Moreover, growth in new orders also cooled as some customers postponed purchases due to elevated prices and generalized shortages. Meanwhile, staffing levels grew for the fourth consecutive month in October, although the job creation pace eased from September. Turning to prices, input costs continued to increase in October, marking the second-highest inflation rate in the series’ history, due to persistent shortages in raw materials and shipping containers. Consequently, output prices rose at the sharpest rate on record as firms passed on higher production costs. Lastly, sentiment among firms improved in October.

Industrial production is seen growing 10.5% in 2021, which is up 1.4 percentage points from last month’s forecast. In 2022, our panel sees industrial production growth at 3.7%, which is up 0.5 percentage points from the prior month’s projection.


Author:, Junior Economist

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Colombia PMI October 2021

Note: 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 IHS Markit.


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