Nov 6, 2018. The “Purchasing Managers Index” is an indicator of economic health for the manufacturing and services sectors. This fell to 50.4 for the month of September, which means that it remained stagnant. If the index continues to remain slightly above the limit (50), it means that manufacturing expands. On the other hand, there would be contraction in the sector if the index reached levels below the mentioned 50.
This sector reached levels below 35 due to the devastation of Hurricane Maria, but already this year it has been able to recover showing levels of expansion, thanks to the economic reactivation. These transfers, as we have indicated in previous analyzes, have a positive effect on the economy in the short term.
Manufacturing experiences a decline in new orders. 34.8% of the respondents indicated that the orders are worse, 21.7% indicated that they are better and 43.5% that they are the same.
The production also suffered a contraction for that month. From here, 30.4% indicated that production is worse than the previous month, while 21.7% indicated that it is better and 47.8% is the same.
On the other hand, the respondents indicated that both the employment and the delivery of suppliers and inventories in the company have not been affected so much and continue to have similar numbers to the previous month, thus placing themselves above the 50 threshold. This is the result of interviews to purchasing managers of manufacturing companies with 50 or more employees and members of the Industrial Association.
Despite this result, manufacturing has been very affected by the past years. There has been a reduction in average employment from 2015 to 2017 of 3% and an average salary reduction per week of 1% for the same date. It takes more than economic injections to maintain a stable and constantly expanding manufacturing sector.