Puerto Rico manufacturing activity strengthens in September
Puerto Rico’s manufacturing sector showed renewed momentum in September as the Purchasing Managers Index (PMI) climbed to 55.6, signaling expansion across multiple production categories.
The figure marked one of the strongest performances of 2025 and reflected steady improvement in local industrial activity despite global and structural challenges, according to the Puerto Rico Institute of Statistics.
A PMI reading above 50 indicates growth compared with the previous month. The Institute and the Puerto Rico Manufacturers Association reported that all five key sub-indices — new orders, production, employment, supplier deliveries and inventories — were at or above the threshold.
New orders rose to 59.4, remaining in expansion territory for the ninth consecutive month, while production and employment each reached 53.1, indicating gains in output and hiring.
The report noted that supplier delivery times slowed, with an index reading of 62.5, suggesting strong demand and supply chain activity. Inventories held steady at 50, reflecting balanced stock levels. In supplemental surveys, manufacturers cited operating costs, material prices, supplier deliveries and workforce availability as their main concerns.
Data from the Coincident Manufacturing Index (ICM) reinforced the positive outlook, showing a 0.2% month-over-month increase in August and a 1.4% annual gain — the strongest this year.
“Industrial activity in August rebounded after contracting the previous month, marking the fifth increase in the past six months,” said economist Ángel Rivera-Montañez, who compiles the index.
“The industry continues to face challenges such as trade volatility, high prices and labor supply issues, but recent company expansions represent significant opportunities for Puerto Rico,” he said.
The ICM averaged 108.1 points in August, reflecting gains for both fiscal and calendar periods. Rivera-Montañez noted that high utility costs, particularly electricity, remain a major obstacle to competitiveness, especially for small and mid-sized firms.
Despite those pressures, the steady increases in both indices suggest that Puerto Rico’s manufacturing base continues to expand in 2025, supported by sustained demand and ongoing industrial investment, officials said.
The PMI has now been at or above the expansion threshold in 114 of the past 184 months, underscoring the sector’s resilience and its importance to the island’s economy.
