attractive landscape in Colombia

Colombia PMI April 2019

Colombia: Manufacturing PMI swings back into expansionary territory in April

Business conditions in Colombia’s manufacturing sector showed improvement in April, reflected by the seasonally-adjusted Davivienda manufacturing Purchasing Managers Index (PMI) swinging back into expansionary territory. The index rose to 51.0 in April, from 48.9 in March, thus moving above the critical 50-point threshold separating expansion from contraction. This marks a turnaround from the first-quarter’s run of losses, when the index remained below the threshold. April’s reading was still fairly meek, however, compared to the average recorded in 2018.

Stronger demand conditions fueled upturns in the growth of output and new orders in April. Firms hired more workers to deal with the increased backlogs of work, although the rate of hire slowed from March. Inventories also fell on raw material scarcity and scheduled maintenance works. On the price front, input costs climbed, as the peso lost ground against the dollar and supply disruptions erupted from protests by members of the indigenous community. Manufacturers raised output prices only marginally in response, opting to take most of the costs burden.

Commenting on the latest reading, Andrés Langebaek Rueda, Chief Economist Bolivar Group at Davivienda:

“Although the figures for the latest month give us back the optimism on the sector, it is important to highlight the apparent deterioration in the margins of firms in the manufacturing sector as a result of pressures on the cost of inputs, encouraged by the devaluation of the peso in recent months and the aforementioned closure of the roads. These input price pressures have not been completely transferred to the prices of the products.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest