IE Business Daily Business news for the Inland Empire.
Inland Empire manufacturing roared back to life in January, posting a purchasing managers index of 56.5 amid an across-the-board surge of new orders, production expansion, inventory growth and employment.
That performance came one month after the region posted an index of 42.5, well below 50, the dividing line for determining whether manufacturing in Riverside and San Bernardino counties is expanding or contracting, according to the Institute of Applied Research and Policy Analysis at Cal State San Bernardino.
That was the first time in five months the index was below 50. Because it takes three consecutive months in either direction to establish a trend, the Inland region wasn’t quite looking at a shrinking manufacturing sector.
Now, with January’s numbers official, a manufacturing slowdown is even less of a concern.
“This increase suggests that last month’s decline was a temporary fluctuation driven by the holiday season and industry specific factors, rather than a sign of significant economic challenges for the region,” the report states. The overall PMI trend remains consistent with national levels, and this month’s figure surpasses the national PMI.”
Looking ahead, 31.3 percent of the purchasing managers interviewed said they expect the local economy to strengthen during the next three months, 43.8 percent expect it to stay the same, and 24.9 percent said they expect it to get weaker, the report states.
