Colombia: Manufacturing PMI falls to record-low in April
May 4, 2020
The seasonally-adjusted Davivienda manufacturing Purchasing Managers’ Index nosedived to a record-low of 27.6 in April from to 49.3 in March amid the ongoing Covid-19 pandemic. Thus, the index dropped further below the critical 50-threshold which indicates a deterioration in the health of the manufacturing sector.
Lockdown measures implemented at the end-March to contain the spread of the virus were largely behind April’s downturn with output and new orders falling sharply. Consequently, firms had to cut employment, shedding jobs at the fastest rate in the series’ history. On the price front, input cost inflation picked up pace amid higher input prices due to a weaker peso against the U.S. dollar, while output charges rose only softly due to feeble demand. Lastly, although the outlook for the year ahead fell to a survey low amid concerns of a prolonged downturn, expectations remained positive overall.
Author: Hanna Andersson, Economist