The Purchasing Managers Index (PMI) for Puerto Rico’s manufacturing sector increased to 50.4 in May, indicating an expansion in the manufacturing sector with respect to the previous month.
The PRM-PMI is the result of a collaborative project between the Puerto Rico Manufacturers Association and the Puerto Rico Institute of Statistics. The index 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.
The report shows that the New Orders (47.8), Production (52.2) and Employment (43.5) sub-indexes increased with respect to the previous month. Meanwhile, Production (52.2), Suppliers Deliveries (54.3) and Own Inventories (54.3) sub-indexes were at or above the threshold level of 50.
“In a supplemental survey of manufacturing establishments, only 13% of the respondents indicated that their operations ceased following the health measurements taken by the government due to the COVID-19 pandemic,” the report stated.
Factors affected by the pandemic in the manufacturing were: a reduction in suppliers’ deliveries (78%), a reduction in inventory (52%), a reduction in demand (48%), a reduction in staff (44%), and others (13%).
The PRM-PMI has been at or above the threshold level in 68 of the 121 months since the survey was first undertaken. The analysis is currently available only on a Non‐Seasonally Adjusted (NSA) basis, which means that seasonal fluctuations can affect its performance.