Manufacturing in Puerto Rico remains steady for 12th consecutive month
SAN JUAN – The Purchasing Managers Index (PMI) for Puerto Rico’s manufacturing sector rose to 53.2 in October, remaining at or above the threshold of 50 for the 12th consecutive month, the Statistics Institute reported Monday.
The PMI is calculated as the simple average of five sub-indexes, representing different conditions in establishments: New Orders, Production, Employment, Supplier Deliveries and Own Inventories.
For any given month with respect to the previous month, participants are asked to answer whether the business condition of the establishment: improved, remained the same or deteriorated. A value above 50 suggests that the business condition has improved from the previous month.
Several components of the PMI showed an increase. The Own Inventories sub-index edged down to 56, but remained at or above the threshold level for the eighth consecutive month, suggesting that inventories in manufacturing establishments remain stable.
The index has been at or above the threshold level in 62 of the 102 months since the survey was first undertaken. The PMI is available only on a non‐seasonally adjusted (NSA) basis, which means that seasonal fluctuations can affect its performance.
In October, the New Orders PMI rose to 48, but remained below the threshold level for the second consecutive month. A reading below 50 indicates that new orders at manufacturing establishments in October were lower than in September. The Production PMI lept over the threshold to 58 in October. A reading higher than 50 indicates that manufacturing production in October was higher than in September.
The Employment PMI dropped to 48 in October, falling below the threshold level, but Supplier Deliveries increased to 56, remaining at or above the threshold level for a second consecutive month, suggesting continued demand for intermediate goods.