IE Business Daily Business news for the Inland Empire.
Manufacturing in the Inland Empire recorded another solid month in April.
The two-county region’s purchasing managers index last month was 60, the seventh consecutive month it’s been above 50 and the highest it’s been in three years, said Barbara Sirotnik, director of the Institute of Applied Research and Policy Analysis at Cal State Bernardino.
Seven straight months is a strong run, but Sirotnik declined to celebrate.
“I’m not throwing my hat in the air because it’s only up slightly from the previous month (59.1 in March),” said Sirotnik, who helps compile the data for the institute’s monthly report. “But it’s still a solid number that shows slow, steady growth. That’s the best kind of growth because it can be sustained.”
An index of 50 or higher means manufacturing is growing, below 50 means it’s shrinking. It takes three consecutive months in either direction to establish a trend, so manufacturing in Riverside and San Bernardino counties is clearly on the upswing, with no drop in sight, Sirotnik said.
The only negative was the region’s employment index, which fell from 57.8 in March to 48.4 last month. That’s the first time that number has dropped below 50 since October, but because it’s only one month it’s probably too early to be concerned.
“If it happens again next month we could have a problem, but for now I’m not worried,” Sirotnik said. “Production and new orders are both up, and we’re pleased with that.”
Twenty eight percent of the Inland purchasing managers surveyed said they expect the local economy to improve during the next three months, while 59 percent said they expect it to remain the same.
Only 13 percent said they expect to local economy to weaken during that time, according to the index.
