IE Business Daily Business news for the Inland Empire.
The Inland Empire’s purchasing managers index fell below 50 in June, a sign of a possible contraction in that sector, according to a report.
Last month’s 48.6 index, down from 51.1 in May, marked the first time since January the index fell below 50, the Institute of Applied Research and Policy Analysis at Cal State San Bernardino reported.
Three consecutive months, either up or down, determines whether manufacturing in Riverside and San Bernardino counties is expanding or contracting. The June data, which includes a production index below 50, means Inland manufacturing is in limbo at the moment but possibly heading in the wrong direction.
On the positive side, the commodity price index stopped moving up in June, dropping to 57.1 from 75, an indication that production costs are declining. Employment – 53.6 – also moved in the right direction for the second consecutive month.
Sixty four point three percent of purchasing managers polled said they expect the local economy to get weaker during the next three months, while 28.6 percent said they expect it to remain the same. Only 7.1 percent said it will improve during that time.
