Colombia’s manufacturing sector expansion lost some steam in December amid a slowing in output growth, survey data from IHS Markit showed on Monday.
The Davivienda purchasing manager’s index for the manufacturing sector dropped to 51.8 from 52.1 in November. A reading above 50 suggest growth in the sector.
The Colombian manufacturing sector expanded for the seventh month in a row.
New orders grew for a consecutive third month and at the fastest pace since July, thanks to better demand and restocking efforts of clients.
Meanwhile, production growth slowed due to difficulties in procuring some key materials.
Employment grew for a third month, but at a slightly slower pace than in November.
“Firms are positive about the outlook, as evidenced by an improvement in business confidence and initiatives to replace staff laid off at the onset of COVID-19,” Pollyanna De Lima, economics associate director at IHS Markit, said.
“Companies have, however, some concerns which are centered on their ability to lift safety stocks, a second spike of cases before a vaccine roll-out and a slow economic recovery.”