Colombia Factory Growth Moderates in July

Colombia’s Davivienda Manufacturing PMI edged down to 52.7 in July 2026 from 53.7 in June, signaling another solid expansion in factory activity. New orders grew strongly, although production increased only marginally, while finished goods inventories declined for a fifth consecutive month. To replenish stocks, manufacturers stepped up input purchases despite supply delays caused by port disruptions, supplier shortages, and traffic congestion. Vendor delivery times continued to worsen, though at the slowest pace since February. Pre-production inventories also rose for a second straight month as previously ordered materials arrived. Employment increased as firms worked to clear backlogs and meet demand, with outstanding business falling for a sixth consecutive month. Cost pressures remained elevated but eased to a six-month low, while output price inflation slowed to its weakest pace this year. Business confidence stayed positive.

Colombia’s Davivienda Manufacturing PMI rose to 53.7 in June 2026 from 51.8 in May, signaling the strongest improvement in factory conditions since November 2025. Stronger demand was the main driver, with new orders and total sales expanding at the fastest pace since last November. In response, manufacturers increased output and stepped up input purchases to meet rising production needs. Employment also rose for the third consecutive month, with the pace of hiring reaching a 17-month high. Firms reported growing order books despite passing on higher costs to customers, with output prices rising sharply and at a faster pace than in May. Input cost inflation eased to a three-month low but remained elevated, driven by higher labor, material, oil, and transportation costs. Looking ahead, business optimism improved on expectations of stronger marketing efforts, new product launches, better market conditions after the elections, and the signing of pending contracts.

Colombia's Davivienda Manufacturing PMI rose to 51.8 in May 2026 from 50.8 in April, marking the highest reading since December 2025 and signaling a stronger expansion in factory activity. Resilient demand supported modest increases in both output and new orders, helping production return to growth. Manufacturers also increased staffing levels for a second consecutive month, supported by improved expectations for future output. Business confidence rose to a three-month high. Firms boosted purchases of raw materials and semi-finished goods to strengthen inventories, while input cost inflation accelerated to its highest level in 38 months. Output prices continued to rise at a historically elevated pace, although the rate eased to its weakest this year. Meanwhile, supplier delivery times lengthened to the greatest extent since September 2024, stocks of purchases and finished goods declined for a third straight month, and outstanding business volumes fell for the fourth consecutive month.