The Purchasing Managers Index for Puerto Rico’s manufacturing sector decreased to 41.9 in December and remained below the threshold level for the ninth consecutive month, according to the most recent report released by the Puerto Rico Manufacturers Association and the Puerto Rico Institute of Statistics.
“A reading below the threshold level suggests a contraction in the manufacturing sector with respect to the previous month,” the report noted.
The index relies on several key indicators to gauge the changes: New orders; production; employment; supplier deliveries; and own inventories.
In December, the New Orders PMI decreased to 35.7, which is below the threshold and lower than those registered in November.
The production PMI declined to 31.0 in December, after having reached to 38.6 last month.
The employment PMI increased to 40.5, while the supplier deliveries PMI increased to 57.1 in December. Finally, the own inventories PMI increased to 45.2, in December but remained below the threshold level of 50, for a fifth consecutive month.
The Purchasing Managers Index for Puerto Rico’s manufacturing measures the sector’s short-run business conditions and provides a broad-based metric for the productive side of Puerto Rico’s economy.