P.R. manufacturing index drops to 43.8 in Sept., suggesting sector contraction
The Purchasing Managers Index for Puerto Rico’s manufacturing sector decreased to 43.8 in September but remained below the threshold level for the sixth consecutive month.
A Puerto Rico Manufacturing-Purchasing Managers Index (PRM-PMI) reading below the threshold level suggests a contraction in the manufacturing sector with respect to the previous month.
The New Orders and Employment sub-indexes increased with respect to the previous month, to 44.2 and 46.2, respectively. However, the Suppliers Deliveries sub-index ticked down to 50, according to the result of a collaborative project between the Puerto Rico Manufacturers Association and the Puerto Rico Institute of Statistics.
The PRM-PMI 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. It is currently in a testing phase to ensure a reliable methodology.
The PRM-PMI has been at or above the threshold level in 66 of the 113 months since the survey was first undertaken. The PRM‐PMI is currently available only on a Non‐Seasonally Adjusted (NSA) basis, which means that seasonal fluctuations can affect its performance.
The Production PMI (NSA) edged down to 44.2 in September, after being at the threshold level compared to last month, while the Own Inventories PMI fell below the threshold level to 34.6.