Colombia: Manufacturing PMI eases in September but remains in expansionary territory
October 1, 2020
The seasonally-adjusted Davivienda manufacturing Purchasing Managers’ Index (PMI) came in at 50.4 in September, down from August’s 51.2. Despite the drop, the PMI remained above the 50-threshold, and marked the fourth consecutive monthly improvement in the operating conditions of the manufacturing sector.
September’s result was largely driven by softer growth in production—the weakest in four months—and falling new orders, as the pandemic continued to dampen demand. In addition, manufacturers’ purchases declined for the first time in three months, as elevated uncertainty prompted firms to run through their stocks. That said, employment was broadly stable in September, while business sentiment rose to a seven-month high amid firms’ expectations of higher output in the coming 12 months. Lastly, on the price front, input cost inflation accelerated in September due to a stronger U.S. dollar and raw material shortages, while output charge inflation was the softest in four months.