IE Business Daily Business news for the Inland Empire.
Inland Empire manufacturing took a hit in August.
The region’s purchasing managers index fell to 46.2, the result of steep drops in production and new orders, according to the Institute of Applied Research and Policy Analysis at Cal State San Bernardino.
That decline, from 56.9 in July, is significant because anything below 50 is a sign that manufacturing is declining. Anything 50 or above indicates expansion.
Three consecutive months in either direction establishes a trend. The index last fell below 50 in December, when it was 42.5.
Production fell sharply in August, to 45.2, down from 57.7 in July, and the first time that number has been below 50 since January. New orders went from 65.4 in July to 35.7 last month.
The commodity price index – 69.1 up from 53.8 – has now been above 50 for one year, a sign of ongoing price increases. Industrial employment and total inventory were also down.
Forty-two-point nine percent of the purchasing managers interviewed said they expect the Inland economy to remain where it is now during the next three months, while 47.6 percent said they expect it get weaker. Only 9.5 percent said they expect the local economy to get stronger during that time, according to the institute.
