Colombia: Manufacturing PMI moderates in August; conditions continue to improve
September 2, 2021
The seasonally-adjusted Manufacturing Purchasing Managers' Index (PMI)—produced by IHS Markit and Davividenda—came in at 53.2 in August, down from July's one-year high of 54.2. As such, the index remained above the 50-threshold, pointing to a continued, albeit moderating, improvement in business conditions from the previous month.
August’s moderation was largely due to factory orders expanding at a milder rate in August. Output grew for the second month running—albeit at a milder rate than in July—underpinned by continued sales increase. Meanwhile, backlogs of work rose at a record pace in August, due to the combination of increased sales and shortages of staff and raw materials. Consequently, firms increased staff levels at the sharpest rate in over five-and-a-half years. On the price front, input costs continued its upward trend due to raw material shortages; overall cost inflation quickened to the third-highest rate on record amid unfavorable exchange rates, shipping container scarcity and logistical issues. Lastly, producers remained optimistic over output increases in the coming 12 months.
Author: Marta Casanovas , Junior Economist