Colombia: Manufacturing PMI shows slight expansion in February
The Davivienda Colombia and S&P Global Manufacturing Purchasing Managers’ Index (PMI) fell to 51.2 in February from January’s 19-month high of 55.1. As a result, the index moved closer to, but remained above, the 50.0 no-change threshold and signaled a more moderate improvement in manufacturing-sector operating conditions compared to the previous month.
February’s slowdown was primarily due to constrained client budgets, which led to softer expansions in new orders. Consequently, output expanded at a significantly weaker pace, prompting firms to reduce their workforces and their buying levels. The reduction in purchasing was partly attributed to adequate material reserves in inventories, despite businesses facing challenges such as supplier delivery delays caused by traffic jams, shortages of critical inputs, and international shipping issues.
On the pricing front, input cost inflation accelerated to a nine-month high, driven by higher expenses for maritime transportation, rent, taxation, and wages. In response, manufacturers raised their output charges, with output inflation also hitting a nine-month high. Despite these challenges, businesses remained optimistic.