Positive remarks from Purchasing Managers included: “January has been a very busy month both in shipping product and quoting new business,” “The cold weather has helped the electric heater business, at least as new orders come in.”

Some Purchasing Managers had cautionary comments: “Business continues to be slow. Competitive-pricing market at this time,” “Economy seems to be at a standstill,” “Natural Gas prices due to this winter are hurting our business.  Otherwise we are having a good start,” “New orders are down from previous January,” “At this time we see lackluster demand for roofing products used in residential construction and re-roofing. In short we fight for every order, and have several disadvantages over on competitor in Northern Mexico,” and “Weak recovery aggravated by high taxes and regulations.”

In summary, since the report’s inception in 1993, January’s figures have been relatively similar to those in December.  This year is no exception.  The bottom line is that the PMI (a three-month leading indicator of the overall economy) is “up,” thus we project continued sluggish growth in the local manufacturing sector.  Further, we project that the local economy will continue to grow for at least the next few months, especially if gas prices remain relatively low (as is predicted by a number of economists) and consumer spending continues to increase.

FOR QUESTIONS OR FURTHER INFORMATION, CONTACT:

Dr. Barbara Sirotnik
Director, Institute of Applied Research
(909) 537-5729

Kelly Reenders
Administrator, San Bernardino County Economic Development Agency
(909) 387-9801

Rob Moran
Economic Development Manager, Riverside County Economic Development Agency
(951) 955-6673

Dr. Lawrence Rose
Dean, College of Business and Public Administration, CSUSB
(909) 537-3703

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Institute of Applied Research
Report on Business
Released 2/03/2014