Colombia’s manufacturing PMI dips slightly in August ’24

Davivienda Colombia Manufacturing Purchasing Managers’ Index (PMI) fell slightly to 49.8 in August 2024 from 50.0 in July, indicating a marginal deterioration in the health of the sector, according to the latest data on Tuesday.

Despite the slight decline, firms increased production volumes midway through the third quarter, driven by efficiency gains and expectations of new business growth in the coming months.

The rate of expansion in production was moderate but marked the quickest pace since January. Business sentiment in the manufacturing sector improved further in August, reaching its highest level since March.

Panellists expressed optimism that increased advertising, innovation, and new product releases would help boost demand and output in the year ahead. Some companies also expressed hope that pending projects would be approved soon.

However, for the fifth time in six months, order book volumes declined in August. Surveyed companies noted that sales were adversely affected by public policy uncertainty, high stock levels at clients, and subdued underlying demand.

Despite the drop in new sales back into contraction territory during August, expectations of a near-term recovery prompted companies to purchase additional inputs, the report added.

Attribution: Davivienda Colombia Manufacturing PMI report

Subediting: M. S. Salama