attractive landscape in Colombia

Colombia PMI December 2021

Colombia: Manufacturing PMI falls markedly in December; conditions still improve

The seasonally-adjusted Manufacturing Purchasing Managers’ Index (PMI)—produced by IHS Markit and Davivienda—fell to 53.1 in December from November’s 54.9. Despite the fall, the index remained above the 50-threshold, signaling a continued, albeit softer, improvement in business conditions compared to the prior month.

December’s slowdown came amid a moderation in production growth, which posted the slowest rate in six months, partly constrained by raw material shortages. The material shortages, coupled with limited shipping container availability and transportation issues, led to an increase in cost inflation, with firms partly passing on the burden to customers. More positively, firms continued to onboard staff in December and new orders—the largest sub-component—expanded at a quicker pace, aided by a general improvement in demand. Lastly, business confidence dropped to a seven-month low in December, weighed on by fears of persistent supply bottlenecks and elevated price pressures in 2022.

Pollyanna De Lima, economics associate director at IHS Markit, commented:

“The PMI results for December showed a further loss of growth momentum among Colombian manufacturers as supply-side issues had a cascading effect on the sector. […] The positive takeaway from the latest PMI results came from the demand-side of the economy, with companies seeing a stronger increase in factory orders despite a sharp rise in prices charged for their goods.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest