Colombia: Manufacturing PMI recedes slightly in July
August 3, 2020
The seasonally-adjusted Davivienda manufacturing Purchasing Managers’ Index (PMI) came in at 54.2 in July, down slightly from June’s 54.7 but still pointed to an ongoing recovery in the manufacturing sector. The PMI had fallen to record lows in April and May hit by a nationwide lockdown due to the coronavirus pandemic. Accordingly, the PMI continues to lie solidly above the 50-threshold, indicating an expansion in the manufacturing sector.
Looking at the details, firms increased production and new orders strengthened as the economy continued to restart. That said, output growth still remained moderate compared to pre-Covid-19 levels. Meanwhile, firms continued to shed jobs in July while sentiment deteriorated amid ongoing concerns over the pandemic and the possibility of a second lockdown. Regarding prices, input costs rose on the back of a stronger U.S. dollar, supply shortages and higher supplier prices.