Colombia: Manufacturing PMI points to start of recovery in June
The seasonally-adjusted Davivienda manufacturing Purchasing Managers’ Index (PMI) rose by over 17 points in June, recovering after the worst readings on record in April and May. The PMI jumped to 57.4, crossing the crucial 50-threshold and indicating an expansion in the manufacturing sector (May: 37.2). The result suggests that the sector is beginning to recover from the sharp downturn due to lockdown restrictions and a halt in the global economy amid the coronavirus pandemic.
Rebounds in new orders and output drove June’s improvement, as businesses restarted operations. However, higher backlogs of work were also recorded in the month as some manufactures struggled to produce amid input shortages from the pandemic. Firms also continued to shed jobs, however, at a soft pace. Meanwhile, business sentiment hit a four-month high in June.