Puerto Rico’s Manufacturing Index maintains upward trend in May
Activity in Puerto Rico’s manufacturing industry continues its upward trend, according to the Index of Coincident Indicators in Manufacturing (IICM), for May 2022, prepared by the Department of Economic Development and Commerce’s (DDEC, in Spanish) Business Intelligence Division.
The data for May reflects the highest monthly level recorded since July 2009, when it reached 112.2 points, and has increased in 23 of the past 25 months.
“During the month of May, the IICM registered a value of 112.4 points (2016=100), with an increase of 0.4% compared to the previous month. All the components of the Index, seasonally adjusted for prices and productivity, reported increases,” said DDEC Secretary Manuel Cidre.
During May 2022, and at an annual rate, the IICM reflected the 14th consecutive increase, maintaining upward momentum in the trend, Cidre said, citing the report. The May 2022 value registered an increase of 8.7%.
When analyzing the average value, and with only one month left to end the current fiscal year, industrial activity increased by 7.1%. On the other hand, when analyzing the average value of the first five months of this calendar year (January-May), industrial activity registered an increase of 8.1%, compared to the same period of the previous calendar year.
“This is good news for Puerto Rico, considering that even the high prices of energy and raw materials continue to exert pressure on international markets. Inflation and the perspectives of the markets in this inflationary scenario have become the first threat to the recovery of the sector and the global economy,” Cidre said.
“However, we’re positive that manufacturing on the island will continue a sustained pattern of recovery and growth, with all the efforts that we are carrying out together with the industries to achieve greater competitiveness for Puerto Rico,” he said.
The IICM includes a series of coincident type indicators that measure the economic state and the short-term fluctuations of the economic activity in the industry, in synchrony with said economic state.
Its methodological order based on the formulation of the Conference Board, produces a single value that is defined as Index. It identifies and analyzes turning points, serves as a tool to analyze the impact of economic cycles, world events and make projections on other indicators that highlight the general state of the economy.