FX.co ★ Colombia Factory Growth Moderates in October

Colombia’s Davivienda Manufacturing PMI slipped to 51.7 in October 2026, its lowest level since April, down from 54.6 in September and below market expectations of 54.2. Even so, the index remained above its long‑run average, indicating continued, albeit slower, expansion in the sector.

Output grew at only a modest pace—the weakest since July—as new business continued to support production. However, subdued demand for some products and earthquake-related disruptions, particularly to transport, constrained overall growth. New orders rose for the nineteenth consecutive month, though at the slowest rate since May.

Employment fell for the first time in seven months, with firms attributing staff cuts to cash‑flow pressures, layoffs, earthquake-related interruptions and a shortage of skilled labor.

Input cost inflation accelerated to a three‑month high, driven by higher transport expenses, adverse exchange rate movements and increased supplier prices. Companies passed these higher costs on to customers, resulting in a faster rise in selling prices than in September. Despite these challenges, purchasing activity continued to increase and business confidence remained positive.