Manufacturing Index Drops

The Inland Empire’s purchasing managers index took a dramatic fall in December, dropping to its lowest point since 2009.

The 42.1 index – down from 52.3 last month – is exactly one point below the benchmark for a shrinking economy if the index were to stay that low, – or drop more – for three consecutive months, according to the Institute of Applied Research Policy Analysis at Cal State San Bernardino, which releases the monthly report on Inland Empire manufacturing.

Also, anything below 50 is considered a sign that the region’s manufacturing sector is contracting, although it also takes three months to establish a trend there as well.

“This month’s PMI is below both benchmarks,” the report stated. “If the index remains this low for the next two months, a trend of contraction in the Inland Empire economy will have been established.”

There was more bad news: new orders and production were especially weak, registering at 37.9 and 39.4 respectively, their lowest levels since 2012. Also, only 13 percent of the purchasing managers surveyed in Riverside and San Bernardino counties said they expect the economy to get better during the next three months, down from 31 percent last month.