IE Business Daily Business news for the Inland Empire.
Manufacturing in the Inland Empire is back on track, at least for now.
The region’s purchasing manager’s index for October was 52.6, according to the monthly report on manufacturing released Monday by the Institute of Applied Research and Policy Analysis at Cal State San Bernardino.
That was nearly a four-point increase compared with September, but more important the index was above 50, the benchmark for a growing or declining manufacturing sector.
Before September, the index had shown positive growth for five consecutive months, so there was some concern about whether that dip was an aberration or the start of a negative trend.
However, the October index has likely put those fears to rest.
Barring something out of the ordinary – an international incident or fallout from the mid-term elections – the index will likely stay above 50 for awhile, said Barbara Sirotnik, the institute’s director.
“We weren’t too worried,” Sirotnik said. “We figured there was some volatility in the market, and that [September] was a hiccup. So I think we’re back to seeing slow and steady growth.”
Purchasing managers in the Inland region might agree with that. Thirty percent of those surveyed said they expect the economy during the next three months, up from 19 percent in September.
Fifty-five percent said they expect the economy to stay the same during that time, up from fifty percent, while only 15 percent said they expect it to get weaker.
Last month, 31 percent of those purchasing managers surveyed said they expected the economy to decline during the upcoming quarter, according to the index.
