Puerto Rico manufacturing index rises in January
SAN JUAN – The Purchasing Managers Index (PMI) for Puerto Rico’s manufacturing sector rose to 58.5% in January, the first time in three years it has reached high numbers.
The news could not have come at a better time for the Manufacturers Association, which is slated to hold its Progress Caucus on March 9 to discuss its economic development plan and educate about opportunities in the sector amid the fiscal crisis in Puerto Rico.
The PMI, which is provided by the Puerto Rico Statistics Institute (SI), has remained above the threshold of 50 for a third-consecutive month. A reading above the threshold indicates the sector is expanding when compared with the previous month. The sector suffered shortly after Hurricane Maria but the PMI reflects a quickly paced recovery.
According to a chart provided in SI’s report, the last time the PMI was high was in 2015, when it was 10 points higher than the threshold or around 60%. All other subindexes or measurements rose above the 50% threshold level in January.
In January, the New Orders PMI increased to 62.5, jumping over the threshold level; the Production PMI inched up to 57.5, remaining above the threshold level for a third-consecutive month; and the Employment PMI rose to 57.5, remaining over the threshold level for a second-consecutive month.
The Suppliers Delivery subindex, which had remained elevated in recent months partly due to hurricane-related disruptions, dropped to 60, but stayed over the threshold for a sixth-consecutive month.
Four months after hurricanes Irma and Maria, 65 percent of the manufacturing businesses reported they were finally operating normally in January. The PMI has been at or above the threshold level in 53 of the 93 months since the survey was first undertaken.