Colombia Factory Activity Expands Sharply in October

Colombia's Davivienda Manufacturing PMI eased to 51.4 in March from 51.6 in February 2026, indicating moderate sector improvement. New orders expanded modestly as firms noted demand resilience and new client wins, though growth softened. Output rose at a solid pace above its long-run average but receded from the prior month. Cost pressures drove sharp selling price increases, the second-strongest in nearly three-and-a-half years, as input costs surged among the strongest since March 2023. Firms paid more for chemicals, metals, textiles, and wood, with Middle East war cited as a factor. Job shedding continued for the third straight month at a modest pace. Purchasing volumes jumped at the quickest rate since November as firms anticipated further price increases. Supply disruptions worsened, with lead times extending to the most marked level in 2026. Backlogs fell at the fastest rate in 15 months. Manufacturer optimism slipped to a 21-month low, below the long-run average.

Colombia’s Davivienda Manufacturing PMI rose to 51.6 in February 2026 from January’s 10-month low of 50.0, as factory output expanded for the 11th straight month, at the fastest pace since November. New orders grew solidly, exceeding the long-run trend. Rising minimum wages pushed input costs to a near-3-year high, prompting producers to raise selling prices at the steepest rate since December 2022. To offset costs, firms cut jobs, the sharpest decline in nearly six years. Forward-looking sentiment remained upbeat, supported by new products, machinery investments, and marketing, though tempered by concerns over cost pressures, policy, and tariffs.

Colombia’s Davivienda Manufacturing PMI fell to 50.0 in January 2026 from 52.6 in December, hitting a ten-month low and indicating unchanged business conditions. New orders remained in expansion but grew only marginally, while factory output rose for a tenth month at the slowest pace in the period. Output prices increased at a six-month high rate, though below the long-run average, as input costs rose for a 27th straight month and at the fastest pace since mid-2025. Firms cut employment for the first time in seven months amid cost pressures, while purchasing activity and input inventories declined. Backlogs were unchanged. Business confidence eased to a three-month low but stayed above its historical average, supported by investment, efficiency gains and new product plans.