On a non-seasonally adjusted basis (NSA), the Purchasing Managers Index for Puerto Rico’s manufacturing sector edged down to 49.1 in November, suggesting a contraction in the sector with respect to the previous month.
All the sub-indexes decreased when compared to their October reading, except for the Own inventories sub-index; it increased over the threshold level to 52.2 this month, according to the Puerto Rico Manufacturing-Purchasing Managers Index (PRM-PMI) released Wednesday.
The New Orders sub-index fell below the threshold level of 50 to 45.7 in November, after remaining above for three consecutive months. The index has been at or above the threshold level in 49 of the 79 months since the survey was first undertaken.
The New Orders PMI fell below the threshold level to 45.7 in November, after remaining above for three consecutive months. A reading below 50 indicates that on an NSA basis, new orders at manufacturing establishments in November were lower than in October.
In November, the Production PMI edged down to 54.3, but remained above the threshold level for the second consecutive month. A reading above 50 indicates that on an NSA basis, manufacturing production in November was higher than in October.
Meanwhile, the Employment PMI ticked down to the threshold level of 50.0 in November, meaning that on an NSA basis, manufacturing employment in November was the same as in October.
In November, the Supplier Deliveries PMI sank below the threshold level to 43.5, after remaining above for two consecutive months. This result suggests that the speed of supply deliveries in November was faster than in October, representing a lower demand for intermediate goods, according to the report.
Finally, the Own Inventories PMI rose above the threshold level to 52.2 in November, after remaining below for two consecutive months. This means that inventories in Puerto Rico 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 and the Puerto Rico Institute of Statistics. The index measures short-run business conditions in Puerto Rico’s manufacturing sector, and provides a broad-based metric for the productive side of Puerto Rico’s economy.