Colombia PMI June 2019

Colombia

Colombia: Manufacturing PMI tumbles to contractionary territory in June

July 2, 2019

Business conditions in Colombia’s manufacturing sector deteriorated in June. The seasonally-adjusted Davivienda manufacturing Purchasing Managers Index fell from 50.8 in May to 49.2, thus landing below the critical 50-point threshold separating expansion from contraction.

Sales dipped amid increased competition and weak demand, as did new orders after two successive months of expansion. As a result, companies cut down production volumes. Meanwhile, due to constrained cashflows amid lower sales, firms also reduced their staff levels. On the price front, although input cost inflation rose to an over two-year high, output prices increased only modestly. Lastly, business confidence fell to its lowest level in one-and-a-half years, largely reflecting headwinds to output growth and increased competition from Chinese goods.

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 4.1% in 2019, which is down 0.4 percentage points from last month’s forecast. For 2020, panelists expect fixed investment growth to moderate to 3.9%.


Author:, Economist

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Colombia PMI June 2019

Note: Purchasing Managers’ Index. Readings above 50 indicate an expansion in business conditions while readings below 50 point to a contraction.
Source: Davivienda and IHS Markit.


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