Puerto Rico Manufacturing Edged Down in December
The island’s Manufacturing-Purchasing Managers Index is the result of a collaborative project between the Puerto Rico Manufacturers Association and the Puerto Rico Institute of Statistics and is currently available only on a non‐seasonally adjusted (NSA) basis which means that seasonal fluctuations can affect its performance.
“A reading below the threshold level of 50 suggests a contraction in the manufacturing sector with respect to the previous month. The New Orders and Employment sub-indexes remained steady when compared to their November reading, at 45.7 and 50.0 respectively,” the latest report reads.
The Production PMI (NSA) plummeted to 37 this month, falling below the threshold level after two consecutive months above. The PMI has been at or above the threshold level in 49 of the 80 months since the survey was first undertaken. Meanwhile, the New Orders PMI (NSA) was unchanged at 45.7 in December, remaining below the threshold level for the second consecutive month. A reading below 50 in both metrics indicates that manufacturing production and new orders in December were lower than in November.
The Employment PMI (NSA) remained at the threshold level of 50 in December, the third consecutive month at or above the threshold level, while the Supplier Deliveries PMI (NSA) climbed past the threshold level to 52.2, which was slower than in November, suggesting a higher demand for intermediate goods.
The Own Inventories PMI (NSA) declined to 45.7, falling below the threshold level of 50, which indicates that inventories in manufacturing establishments in December were lower than in November.