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Manufacturing Sector Rebounds After June’s Weakness
The July Inland Empire Purchasing Managers’ Index (PMI) registered 55.0, a significant increase from last month’s 46.3. Research by the Institute of Applied Research showed the June PMI dipped below 50 and ended 29 straight months of growth in the manufacturing sector.
Dr. Barbara Sirotnik, director of the Institute at CSUSB, says, “This month we are back above 50. If the index remains above the 50% for another two months, a new trend will have been established indicating conclusively a return to growth in the Inland Empire manufacturing sector.”
All major indices of the PMI increased significantly this month. The New Orders Index increased from 43.3 last month to 61.7, and the Production Index jumped from 45.0 last month to 53.3 this month. The Commodity Price Index registered 56.7 this month, indicating that cost of raw materials is increasing. The Employment Index also had a significant jump from last month’s 41.7 to 60.0 this month. The Supplier Deliveries Index decreased this month to 48.3 from last month’s 58.3, indicating that the speed of deliveries is increasing, notes Sirotnik.
The report indicated most of the survey respondents (64%) continue to believe that the local economy will remain unchanged in the next few months. Only 14% predicted that the local economy will become stronger in the upcoming months, and 22% believe the local economy will become weaker over the next quarter.
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- ◦Economy
