Colombia Davivienda Manufacturing PMI

A panel of approximately 350 manufacturers participated in the survey, on which The Colombia Manufacturing PMI is based, resulting in responses to questionnaires issued to purchasing managers at each of the participating companies. Panelists are divided into groups based on their contributions to GDP and are stratified by particular sectors and firm sizes. Responses to the questionnaires are collected in the middle of each month and are used to determine the direction of change when compared to the previous month. Each survey indicator is assigned a diffusion index, which is then calculated. The index is calculated as the sum of the percentage of increased responses and half of the percentage of unchanged responses. The indices range from 0 to 100, with a reading greater than 50 indicating an increasing trend and a reading less than 50 suggesting a decrease. Seasonal adjustment is then applied to the diffusion indices through the use of a proprietary algorithm developed by IHS Markit. Five individual indexes are used to calculate the composite index, with the weights as follows: New Orders (30%), Output (25%), Employment (20%), Suppliers Delivery Times (15%), and Stock of Items Purchased (10%). The Delivery Times index is reversed so that it moves in the same direction as the other four indices.