Colombia Manufacturing PMI Hits 10-Month Low

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.

Colombia’s Davivienda Manufacturing PMI eased to 52.6 in December 2025 from 54.0 in November, remaining in expansion territory and above its long-run average. Factory orders rose strongly, supported by competitive pricing, solid demand, project approvals, and successful trade fairs. Although growth slowed to a three-month low, it remained among the strongest readings in the past two years. Output growth softened more than new orders but stayed historically robust. Input cost pressures were marginal in December. Manufacturers remained optimistic about 2026, citing advertising efforts, strong order pipelines, technology investment, and warehouse expansion plans. Business confidence stood near its highest level in almost four and a half years.

Colombia’s Davidenda Manufacturing PMI was reported at 54 in November 2025 slightly down from 54.8 in October but continuing to point to a robust expansion in the manufacturing sector. Output saw one of its strongest increases in three-and-a-half years, following a record rise in October. New orders expanded sharply at the fastest pace since August, prompting firms to boost input purchases and rebuild inventories. Hiring also strengthened, with employment rising at the quickest rate since August. Input costs continued to increase but at a historically negligible pace, more than nine points below the long-run average. Selling prices fell for a second month, though only marginally, as softer cost pressures and competition encouraged discounting. Also, business sentiment improved, reaching its highest level in over four years.