Monday, October 25, 2021

Manufacturing Index Continues to Grow and Recover

By on July 2, 2021

Economic Development and Commerce (DDEC by its Spanish acronym) Secretary Manuel Cidre announced Friday that for the 12th consecutive month, activity in the manufacturing industry is showing progress.  For April, a preliminary value of 104.9 points was recorded, an increase at a monthly and seasonally adjusted rate equivalent to 0.5 points compared with the previous month. The Manufacturing Coincident Indicators Index (IICM by its Spanish initials) for April 2021 is prepared by the DDEC’s Business Intelligence Division.

The DDEC Secretary explained that, at an annual rate and when comparing the analysis of April 2021 with the same month of the previous year, the IICM recorded an increase of 9.0 percent. 

“The IICM reflected a rebound in its value due to the significant drop in industrial activity in April 2020 due to COVID-19, the eventual lockdown and the peak that the industry has experienced in recent months, which exceeds the drop experienced during the same month of the previous year,” he said.

Cidre stressed that, although the average value of fiscal year 2021 remains slightly below the activity recorded during the same period of the previous fiscal year, since the beginning of the current fiscal period the drop in the average value has been reduced with a marked trend and with a prospect of reaching the positive quadrant.

“Between the first month of this fiscal year and April 2021, progress in the IICM has reduced the drop by 3.3 percentage points. This means that the cumulative average value of the IICM for the ten months of the current fiscal year 2021 shows that activity in the manufacturing industry has decreased only 0.6 percent compared to the same period of the previous fiscal year.  At the beginning of the fiscal year 2021 we were 3.9 percent below the same period of the previous fiscal year, which represents a breakthrough in industrial activity month after month,” he added.

On the other hand, the DDEC chief reported that the average value for the calendar year 2021 presents an industrial activity higher than that recorded for the same period of 2020. “For the first four months of 2021, industrial activity showed an increase of 2.1 percent, compared to the analysis of the same period last year, when industrial activity was in the midst of the health crisis and lockdown.”

“I predict progressive and sustained growth for the manufacturing industry,” Cidre said. “Above all, with the waiver of transshipment of cargo and passengers granted by the federal government, which positions Puerto Rico as the most important destination in our geographical basin of specialized manufacturing, because the raw material of pharmaceutical manufacturing, bioequivalent, medical devices and aerospace, comes by boat and leaves by plane. This project will help retain the industries operating in Puerto Rico and attract new investments from other continents.”

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