Colombia’s Manufacturing PMI Rises in February

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.

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.