Puerto Rico’s Purchasing Managers Index for the manufacturing sector increased to 52.8 in February, vaulting over the 50-point threshold after two consecutive months of falling short, the report released Tuesday by the Puerto Rico Institute of Statistics revealed.
A reading above the threshold level of 50 suggests an expansion in the manufacturing sector with respect to the previous month.
“All of the sub‐indexes rose when compared to their January reading, and all of the sub‐indexes, except for the employment sub‐index, were above the threshold level in February,” the report said. “This month, in response to recommendations from manufacturers, an experimental question regarding manufacturing downtime was added and the survey results indicate that almost 30 percent experienced greater downtime during February as compared to January.”
The PRM‐PMI has been at or above the threshold level in 34 of the 46 months since the survey was first unveiled as the result of a joint collaborative project by the Puerto Rico Manufacturers Association, Scotiabank, and the Puerto Rico Institute of Statistics.
“The PRM‐PMI is currently available only on a non‐seasonally adjusted basis, which means that seasonal fluctuations can affect its performance,” the Institute said.
PMI is calculated as the simple average of five sub‐indexes, representing different business conditions in manufacturing establishments: new orders PMI, production PMI, employment PMI, supplier deliveries PMI, and own inventories PMI.
In terms of new orders, the PMI surged to 51.7 in February, after remaining below the threshold level for two consecutive months. The production PMI jumped to 56.9, after also remaining below the threshold level for two consecutive months.
Meanwhile, the employment PMI edged up to 46.6 in February, but remained below the threshold level for the third consecutive month. In February, the supplier deliveries PMI rose from the threshold level to 56.9.
Finally, the own inventories PMI (NSA) rose above the threshold level to 51.7 in February, after remaining below the threshold level for two consecutive months.
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.
Survey participants include manufacturing establishments with 50 or more employees that are PRMA members.