Inland Purchasing Managers’ Index shows year of steady manufacturing growth
The index for Inland area manufacturing fell nearly four points in December but remained above the 50 percent benchmark for growth — the 12th consecutive month in which the lead number indicated expansion.
“The Inland Empire manufacturing sector and the overall local economy remain comfortably in growth mode,” Barbara Sirotnik, director of the Cal State San Bernardino-based Institute of Applied Research, said in a statement.
The lower December index of 51.0, down from November’s 54.7, was typical for the month when some companies close during the holidays, Sirotnik noted. “And it is encouraging that the figure is much higher than the indices for December 2016 (47.4) and December 2015 (42.1).
The Inland Purchasing Manager’s Index for December surveyed 30 local companies. It looks at indicators such as commodity prices, production, new orders, inventory, employment, and supplier deliveries.
Nationally, the December PMI was at 59.7 percent, an increase of 1.5 percentage points from November, the Institute of Supply Management reported. The overall economy was in its 103rd consecutive month of growth.
Sirotnik noted the Inland employment index, 55.0 for December, was also above the 50 percent growth mark for 12 months in a row.
In the survey of purchasing managers, none of the respondents thought the economy would weaken in the coming quarter, a finding not seen since 2005, before the Great Recession, the report released Wednesday said.
Of the responding managers, 46 percent forecast an improving local economy and 54 percent said it would stay in the same steady growth mode, Sirotnik said.
Other numbers that make up the index showed seasonal decreases.
Purchasing Managers Index for December and how five key components changed since November.
Overall PMI: 51.0, down from 54.7
Commodity prices: 66.7, up from 62.5
Production: 48.3, down from 57.8
New orders: 46.7, down from 53.1
Inventory: 48.3, down from 54.7
Employment: 55.0, unchanged from 55.0
Supplier Deliveries: […]