Puerto Rico’s Purchasing Managers Index (PMI) for the island’s manufacturing sector decreased to 46.2 in November 2012, falling below the threshold value of 50 that suggests a contraction in the manufacturing sector with respect to the previous month.
Both new orders and production sub‐indexes sunk below the threshold level, bringing the PMI index lower in November. Whereas the remaining sub‐indexes — employment, suppliers deliveries, and own inventories — moved up, the employment sub‐index remained below the threshold level for the third consecutive month.
The PRM-PMI, as the measuring tool is known, has been above the threshold value in 24 of the 31 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 PRM‐PMI is the result of a collaborative project between the Puerto Rico Manufacturers Association, Scotiabank, 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.
In November, new orders fell below the threshold to 45.8, lower than those on record for the prior month of October 2012.
Meanwhile, the production PMI dropped below the threshold to 35.4 in November, its lowest level ever since the survey began 31 months ago. That indicator was also lower in comparison to the prior month.
In November, the employment PMI increased to 41.7, but remained below the threshold for the third consecutive month. Supplier deliveries inched up to 52.1 in November remaining above the threshold for the third
Finally, in November, the own inventories PMI edged up to 56.2 remaining above the threshold for the seventh consecutive month, the report noted.