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Puerto Rico manufacturing purchasing index drops to 53.3 in May

The Purchasing Managers Index (PMI) for Puerto Rico’s manufacturing sector dropped to 53.3 in May 2022 when compared to the prior month, affected by human resources issues — absenteeism, recruitment, and turnover — a lack of raw material, delays in supplies deliveries and cost increase for materials and transportation.

The 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 the result of a collaborative project between the Puerto Rico Manufacturers Association and the Puerto Rico Institute of Statistics.

A reading above the threshold level of 50 suggests an expansion in the manufacturing sector with respect to the previous month. The Puerto Rico Manufacturing-Purchasing Managers Index (PRM-PMI) has been at or above the threshold level in 88 of the 144 months since the survey was first produced.

Key elements of the PMI — New Orders, Production and Suppliers Deliveries — increased with respect to the previous month, the report showed. Furthermore, all the sub-indexes were above the threshold level of 50 except Own Inventories.

In a supplemental survey of manufacturing establishments related to the COVID-19 pandemic, factors affected by the pandemic in the manufacturing sector were a reduction in suppliers’ deliveries (54%), a reduction in staff (38%), a reduction in inventory (38%), and others (17%). In contrast, 17% of the respondents weren’t affected by the pandemic. 

In May, the New Orders increased to 54.2 — higher than in April — remaining at or above the threshold for eight consecutive months.

The Production sub-index increased to 52.1 in May, also pushing higher than in April. Meanwhile, the Employment segment decreased to 52.1.

In May, the Own Inventories sub-index decreased to 43.8, after being above the threshold for three consecutive months. Finally, the Supplier Deliveries increased to 64.6 in May, being above the threshold for the 22nd consecutive month. However, the speed of supplier deliveries in May was slower than in April, the PMI report shows.

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This story was written by our staff based on a press release.

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