Colombia - PMI Manufacturero

The seasonally adjusted Davivienda Colombia Manufacturing PMI rose to 52.9 in November 2019 from 51.1 in the previous month. The reading pointed to the quickest expansion in factory activity since August last year, as new orders went up at the sharpest pace in 14 months and output advanced for the 5th straight month and at the fastest rate since September 2018 amid strong demand, greater availability of raw materials and efficiency gains. In addition, the job creation rate accelerated to a near 1-1/2-year high; and purchasing activity increased at the steepest pace in 15 months. On the price front, input cost inflation eased to a 7-month low, still remaining elevated by historical standards; while output price inflation rose to its highest in over 2-1/2-years. Lastly, sentiment remained positive, boosted by expanded clientele, infrastructure projects, marketing efforts, innovation and better use of social media.

The seasonally adjusted Davivienda Colombia Manufacturing PMI rose to 51.1 in October from 50.9 in the previous month. The latest reading pointed to the fastest expansion in factory activity since July. New orders expanded faster, mainly due to advertising, greater client requirements and new product launches. Also, job creation grew the most since September 2018. On the price front, input cost inflation picked up to a 32-month high in October due to a weaker Colombian peso against the US dollar; while output costs rose at the greatest extent since February. Finally, sentiment was little changed from September.

The seasonally adjusted Davivienda Colombia Manufacturing PMI went up to 50.9 in September 2019 from 50.3 in the previous month. New orders rose driven by higher inflows of new work, stronger demand, successful product launches and expanded client numbers. Also, output increased on the back of rising order flows, expansion into new markets and stock-building initiatives. In addition, the job creation rate accelerated to a one-year high boosted by new projects and efforts to fulfil production targets. On the price front, input cost inflation rose driven by currency depreciation while output price inflation slowed to a three-month low. Looking ahead, sentiment improved and was above its long-run average due to planned product launches, sales-boosting efforts, projects in the pipeline and expectations of better economic conditions.

The seasonally adjusted Davivienda Colombia Manufacturing PMI declined to 50.3 in August 2019 from 51.5 in the previous month. New orders fell amid weak demand in the domestic and foreign markets and output rose at a softer pace due to subdued demand. In addition, the job creation rate eased and outstand business dropped as freed-up resources were utilised to complete unfinished work. Also, stocks of both inputs and output decreased after a solid rise in July. Pre-production holdings declined for the fourth successive month, albeit at a slower rate. Additionally, longer lead times on inputs was linked to road repairs and closures and issues at customs and shortages of some materials at vendors. On the price front, input cost inflation slowed to a four-month low mainly due to unfavorable exchange rate and output price inflation eased. Looking ahead, firms were optimist regarding output amid predictions of greater exports, a pick-up in demand, advertising and new product.

The seasonally adjusted Davivienda Colombia Manufacturing PMI rose to 51.5 in July 2019 from 49.2 in the previous month. The reading pointed to the fastest expansion in factory activity since December. After falling in June, new orders grew the most since October and output expanded at the quickest rate in ten months, as firms sought to rebuild inventories to fulfil contract obligations. Also, employment rose, though marginally. In terms of prices, the rate of inflation was the second-fastest since last September, largely due to US dollar appreciation. Subsequently, output charge inflation was solid and the strongest in five months. Looking ahead, business sentiment improved to a four-month high and surpassed its long-run average, amid prospects of sales growth, greater clientele, infrastructure work, innovation and expansion into new markets.

The seasonally adjusted Davivienda Colombia Manufacturing PMI declined to 49.2 in June 2019 from 50.8 in the previous month. The latest reading pointed to a contraction in factory activity after expanding for two consecutive months, as output and new orders fell for the first time in three months amid weak demand and a competitive environment. Additionally, firms lowered workforce numbers and input buying dropped due to a lack of funds. Also, backlogs rose for the first time in five months mainly due to money shortages and raw material scarcity. On the price front, input cost inflation accelerated at the sharpest pace in 28 months and output prices increased. Finally, sentiment deteriorated to a one-and-a-half-year low amid concerns regarding money shortages, subdued sales, bankruptcy of some clients, and the entry of Chinese goods into the market.