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Inland Empire Manufacturing Index Slips into Concerning Zone
The Inland Empire’s purchasing managers index (PMI) dropped below 50, a level that is concerning since the region’s manufacturing sector may be trending toward a contraction. September’s index registered at 49.7, down from 50 in August and 55 in July in the latest numbers from the Institute of Applied Research and Policy Analysis at Cal State San Bernardino.
The report’s co-author, Barbara Sirotnik, points out three consecutive months of growth or expansion are required to establish a trend.
Sirotnik says, “For the past few months, the local purchasing managers index has shown a great deal of variability. This trend is somewhat of a concern, especially since the national purchasing managers index dipped below 50 in August for the first time in 35 months, reflecting weakness in the manufacturing sector.”
The index dipped to 46.3 in June, which was the first time in more than two years that the purchasing managers index fell below 50.
On the bright side, Sirotnik notes the Production and New Orders Indices remained above the 50% baseline, indicating growth and even though the PMI fell below 50 in September, it is nowhere near the figure needed to show that the economy is contracting (42.9).
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- ◦Economy
