Colombia: Manufacturing PMI records worst reading since June 2021 in July
August 1, 2022
The S&P Global Manufacturing Purchasing Managers' Index (PMI) came in at 49.5 in July, down from June's 55.7—the second-best reading on record. July's result marked the worst performance since June 2021, with the index dropping below the 50.0 no-change threshold, signaling a deterioration in business conditions from the previous month.
The decrease in the manufacturing PMI was due to contractions in output and new orders—the first in more than a year. An acceleration in input costs and uncertainty surrounding the policies of the new president Gustavo Petro weighed on new orders. This, in turn, led to a fall in output, employment and input stocks—the first such contractions in more than a year. Meanwhile, business confidence weakened from June due to political uncertainty, currency fluctuations and inflation expectations.