Colombia Factory Growth Moderates in October

Colombia’s Davivienda Manufacturing PMI fell to 51.7 in October 2026, the lowest reading since April, from 54.6 in September and below market expectations of 54.2. Still, the figure remained above its long-run average. Output rose at a modest pace, the slowest since July, as new business supported activity, while weak demand for some products and earthquake-related disruptions, particularly to transport, limited expansion. New orders increased for a nineteenth consecutive month, although at the softest rate since May. Employment declined for the first time in seven months, as firms cited cash-flow difficulties, layoffs, earthquake disruptions and a shortage of skilled labor. Input cost inflation rose to a three-month high amid higher transport costs, unfavorable exchange rate movements and rising supplier prices. Firms passed this on to clients, with selling price inflation faster than in September. Purchasing continued to rise, and confidence remained optimistic.

Colombia’s Davivienda Manufacturing PMI rose to 54.6 in September 2026 from 54.3 in August, signaling the best improvement in sector conditions since October 2025. Factory output rose for a fifth month at the fastest pace since November 2025, while new orders strengthened markedly, with growth among the strongest in the survey’s history. Manufacturers raised purchasing substantially, while purchase inventories increased for a fourth month, although only marginally. Finished-goods inventories fell further as firms used stocks to meet stronger sales. Employment rose for a sixth consecutive month, while backlogs were broadly unchanged. Input-cost inflation eased to a nine-month low, while selling-price inflation also softened. Supplier performance deteriorated further, with delivery times lengthening the most in three months amid disruptions linked to the earthquake, business closures and traffic jams. Business confidence improved further at the end of the third quarter.

Colombia’s Davivienda Manufacturing PMI rose to 54.3 in August 2026 from 52.7 in July, signaling the strongest improvement in factory activity since October 2025. New orders grew at their fastest pace in more than two-and-a-half years, while production growth accelerated to its strongest since February. Finished goods inventories declined for a sixth consecutive month as firms used stocks to meet demand. Manufacturers increased input purchases and inventories, with purchasing activity reaching its strongest level since data collection began in April 2011. Delivery delays eased despite some earthquake-related disruptions. Input cost inflation fell to its lowest level this year, while output price inflation picked up slightly. Employment rose for a fifth consecutive month, while backlogs declined for a seventh month. Business confidence surged to its highest level since July 2019, supported by optimism over the new government administration and expectations of stronger demand.