The industrial sector of Colombia closed the first quarter in better shape than at the beginning since the incoming flows of new businesses grew again and led to the first rebound in production in three months, according to the Davivienda PMI index.
Purchasing levels also increased slightly and employment grew. The improvement of the global supply network led to an approximation to the stabilization of the performance of the suppliers, although the industrialists declared that the strikes and the
Road closures caused delays in deliveries.
(Read: Industrial sector continues to slow down and in February it slowed down more).
In addition, March data pointed to a strong increase in input costs and output prices, although the inflation rate was the second slowest in 25 and 24 months, respectively.
The seasonally adjusted Davivienda Purchasing Management Index (PMI™) for the Colombian industrial sector rose from 49.8 points in February to 51.5 in March and remained in expansion territory for the first time in three months .
The latest reading signaled a slight improvement in the sector’s health, which was nonetheless the strongest since last September.
(Read: ‘Davivienda and DaviPlata, for the popular economy in 2023’).
Industrials experienced their first increase in sales so far this year, when the pace of expansion exceeded its long-term average and was the fastest since June 2022.
In addition to highlighting the signing of pending contracts, respondents mentioned improving demand conditions, competitive pricing and successful advertising campaigns.
It was the Purchasing Management Index of the Colombian industrial sector of Davivienda in March.
At the end of the first quarter, manufacturers hired additional staff, which coincided with news of a recovery in demand conditions and an increase in production requirements. Likewise, employment grew at the fastest rate since September 2022, slightly above the long-term average.
term.
(Read: Reasons that helped to recover economic confidence at the end of 2022).
According to those surveyed, the generation of new business, the creation of employment and the launch of new collections supported the renewed increase in industrial production in Colombia.
Despite being moderate, the expansion contrasted with the decline registered in the two previous months.
Andrés Langebaek Rueda, Executive Director of Economic Studies, Grupo Bolívar, from Davivienda, said that “it is good news that the PMI for March has returned to
be above the 50 point threshold as well as production, orders and employment. However, the average of the indicators in the first quarter of the year suggests weak growth in industrial activity. More encouraging is the expectation of production in the next twelve months which, although it continues below its historical average, reached its highest point in seven months.
(Read: Business conditions improved at the end of the year).
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