IE Business Daily Business news for the Inland Empire.
For the second month in a row, Inland Empire manufacturing moved in the wrong direction.
The region’s purchasing managers index in November was 45.3, well below the 50 benchmark that determines whether manufacturing is growing or contracting, according to data released this week by the Institute of Applied Research and Policy Analysis at Cal State San Bernardino.
In October, the index was 47.5 percent. Three months in either direction – 50 or above for growth, below 50 for contraction – officially establishes a trend, so there probably will be some anxious moments right before the December numbers are released.
Despite the past two reports, it’s still too early to panic, said Barbara Sirotniik, director of the institute.
“If the PMI remains below 50 for one more month, that may indicate that the manufacturing sector is beginning to decline,” Sirotnik said in a statement. “But as long as the figure remains above 43.2, we project that the economy will remain in growth mode for at least the next three months.”
Employment registered 50 for the second month in a row, but two of the index’s key indicators – production and new orders – were well below the 50 percent benchmark in November, according to the index.
