|Puerto Rico Statistics Institute Executive Director Mario Marazzi
Given the pressing need for independent, reliable and periodic statistics about the economy and business conditions of the island’s industrial sector, the Puerto Rico Manufacturers Association’s Industrial Competitiveness Institute and the Puerto Rico Statistics Institute have paired up to begin publishing the Puerto Rico Manufacturing – Purchasing Managers Index. The effort is sponsored by Scotiabank.
This indicator — launched as a pilot program eight months ago — and its components are meant to represent an innovative contribution to Puerto Rico’s statistical system, acting as indicator of the trends showed by the island’s main productive sector, executives said during a press conference Wednesday.
The formal establishment of the survey will represent a monthly publication of statistics that companies, analysts, economists and the government can use to better understand industrial conditions and trends, as well as shape strategies or investment plans.
The PMI is based on responses provided in periodic surveys distributed to sales professionals and executives of the largest manufacturing companies doing local business. It will only request competitive information related to key metrics, such as production volume and inventory and how they vary. It is not a survey based on opinion or speculation, making it a survey “as close to reality as possible,” officials said.
The PRM-PMI will be prepared considering the economy’s seasonal components, which Statistics Institute Executive Director Mario Marazzi said described as “relatively minor” when it comes to making calculations.
“It’s important to have statistics that measure not only our economy’s expenditures and revenues, but also indicators that measure the production of our economy broadly and frequently. At this point, we lack this type of instrument. In that sense, the PRM-PMI fills an important information gap,” Marazzi said.
“The PRMA is committed to promoting measurements and planning based on world-class data. To be able to efficiently evaluate Puerto Rico’s competitiveness, it is indispensable for the island to have a reliable barometer that can measure the performance of the island’s principal exporting and contributing sector, manufacturing,” said Pedro Watlington, PRMA president.
He added, “All of the world’s developed countries and the majority of emerging countries have their PMI and we’re satisfied about being part of this initiative through which Puerto Rico will be able to measure itself against our competition throughout the rest of the world.”
For Scotiabank, participating in the project is part of its initiative to support economic development wherever it does business, said Scotiabank CEO Troy Wright, during the news conference.