Colombia PMI May 2019

Colombia

Colombia: Manufacturing PMI falls in May but remains in expansionary territory

June 4, 2019

Business conditions in Colombia’s manufacturing sector improved again in May but at a softer rate compared to April. The seasonally-adjusted Davivienda manufacturing Purchasing Managers Index fell to 50.8 from 51.0 in the previous month, thus remaining above the critical 50-point threshold separating expansion from contraction. The index moved above the crucial mark after a run of losses in Q1, when the index remained below the threshold.

Output climbed on higher demand and productivity gains, while new orders rose at a slightly faster rate as some firms expanded their market share and launched new products. Despite the upturn in production, employment levels were unchanged as some firms hired more workers, while others kept their payroll numbers stable or saw them decline. On the price front, shortages of raw materials and a strong U.S. dollar pushed up input costs, which prompted manufactures to raise output prices. Meanwhile, business confidence regained lost ground after falling to a four-month low in April on projections of stronger demand.

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 4.5% in 2019, which is up 0.1 percentage points from last month’s forecast. For 2020, panelists expect fixed investment growth to moderate to 4.0%.


Author:, Economist

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Colombia PMI May 2019 4

Note: Purchasing Managers’ Index. Readings above 50 indicate an expansion in business conditions while readings below 50 point to a contraction.
Source: Davivienda and IHS Markit.


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