Inland manufacturing drops

Inland Empire manufacturing slowed considerably in June, in what could be the start of a long-term slowdown.

The region’s purchasing managers index last month fell to 50, down from 65 in May, by far the sharpest drop in recent months, according to the Institute of Applied Research and Policy Analysis at Cal State San Bernardino.

Although it’s still expanding, manufacturing in Riverside and San Bernardino counties was lower in June than it normally is: 57.1 last year, 52.1 in 2023 and 56.2 in 2022. Both production and new orders fell to 46.7, their first readings below 50 in this year.

Those are the index’s two key categories.

Employment remained stable, but prices went up, a sign that inflation continues to harm many Inland manufacturers. The region’s inventory level fell sharply in June to 56.7, down from 70 in May.

Forty-two-point nine percent of the purchasing managers surveyed said they expect the Inland Empire economy to get better in the next three months, and 42.9 percent said they expect it to stay the same. Only 14.3 percent said they expect it get weaker during that time, according to the institute.