Colombia: Manufacturing PMI rises to three-month high in October
The seasonally-adjusted Davivienda manufacturing Purchasing Managers’ Index (PMI) came in at 51.7 in October, up from September’s 50.4—the best result since July. As a result, the PMI climbed further above the 50-threshold, indicating a stronger improvement in the operating conditions of the manufacturing sector.
October’s result was chiefly driven by stronger output growth on the back of renewed stock-piling and businesses reopening as well as by a rebound in in new orders amid the relaxation of Covid-19 associated restrictions. Moreover, employment rose for the first time in seven months in October, while manufacturers remained broadly optimistic as regards to the outlook in the coming 12 months. On the price front, although somewhat easing from the previous month, input cost inflation remained elevated in October largely due to reduced supply and currency weakness. This prompted manufacturers to increase their selling prices again, with output charge inflation rising to its highest since July.