Purchasing Index Bounces Back

Inland Empire manufacturing is growing again, at least for now.

The region’s purchasing managers index last month was 52.3, well above the 45.9 index that was recorded in October, according to data released Tuesday by the Institute of Applied Research and Policy Analysis at Cal State San Bernardino.

Anything below 50 means the manufacturing sector is shrinking, 50 or above means it’s growing.

Last month’s number was the third consecutive month the index was below 50, which officially established a negative trend, so the November index was especially welcome news, said Barbara Sirotnik, institute director.

“I know there’s some seasonality to it, with Christmas coming up, but it’s still a solid number,” said Sirotnik, who helps compile the data for the monthly report. “I was most encouraged by the new orders and production numbers. They’re probably the most important part of the index.”

New orders and production were both at 58.3 in November, and purchasing managers in Riverside and San Bernardino counties were optimistic about the region’s near future: 31 percent of those surveyed said they expect the economy to get stronger during the next three months, while 38 percent said they expect it to remain the same.

Only 31 percent said they expect it to get weaker during that time, according to the index.

While a drop in January is possible as the holiday shopping season phases out, the index should remain strong for at least the next few months, Sirotnik said.