Colombia: Manufacturing PMI edges up but remains in negative terrain in June
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) edged up to 48.3 in June, following May’s 46.7. However, the index remained below the 50-threshold, signaling a deterioration in business conditions from the previous month.
June’s result largely reflected notable declines in both new business and output, as protracted protests weighed on client demand, triggering order cancellations and business closures. Against this backdrop, manufacturers shed their staffing numbers and markedly reduced their purchasing activity. On top of this, raw material shortages and higher transportation costs resulted in higher input cost inflation, prompting firms to hike their selling prices in a bid to protect margins. On a brighter note, however, manufacturers remained optimistic with regards to output in the next 12 months.
Andrés Langebaek Rueda, chief economist at Davivienda, added:
“The figures for our consumer confidence indicator showed an improvement in the last part of the month, which is why we are hopeful that the manufacturing variables measured by the PMI survey will resume positive growth in July. This is also deduced from the change in business expectations, which improved slightly compared to May.”