The Purchasing Managers Index (PMI) for Puerto Rico’s manufacturing sector increased to 53.1 in November, remaining above the threshold level for the fourth consecutive month on a non-seasonally adjusted (NSA) basis, according to the report released Thursday.
A reading above the threshold level of 50 suggests an expansion in the manufacturing sector with respect to the previous month.
“All PMI sub-indexes were above the threshold level of 50 in November. The new orders, production, and suppliers deliveries sub-indexes edged down in November, whereas both the employment and own inventories sub-indexes vaulted over the threshold level,” the report showed.
In the case of the employment sub-index, it was the first time in six months that it was above the threshold. The PRM-PMI has been above the threshold level in 33 of the 43 months since the survey was first published in February 2011.
The PRM‐PMI is currently available only on an NSA basis, which means that seasonal fluctuations can affect its performance.
In November, the new orders PMI decreased to 51.7, but remained at or above the threshold level for the third consecutive month. Meanwhile, the production PMI inched down to 53.4 in November, but remained at or above the threshold level for the fourth consecutive month.
In November, the employment PMI jumped up over the threshold level to 51.7, for the first time in six months.
The supplier deliveries PMI edged down to 53.4 in November, but remained at or above the threshold level for the fifteenth consecutive month. Finally, the own inventories PMI vaulted above the threshold level to 55.2, following two consecutive months below. Inventories in manufacturing establishments in November were higher than in October.
The PRM-PMI is the result of a collaborative project between the Puerto Rico Manufacturers Association, Scotiabank, and the Puerto Rico Institute of Statistics, that measures short-run business conditions in Puerto Rico’s manufacturing sector, and provides a broad-based metric for the productive side of the island’s economy.