IAR’S INLAND EMPIRE REPORT ON BUSINESS

 

 

Report for February 2014

Sponsors:
San Bernardino County Economic Development Agency Riverside County Economic Development Agency

(Editor’s note:  The Inland Empire (I.E.) is a metropolitan area and region of Southern California. It is situated directly east of the Los Angeles metropolitan area.)

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PMI SHOWS GROWTH (ALBEIT ANEMIC) FOR 6TH MONTH IN A ROW

According to Barbara Sirotnik (Director, Institute of Applied Research), and Lori Aldana (Project Coordinator, Institute of Applied Research), “This month’s PMI (50.3) is a decrease from last month’s 51.9.  The good news is that this is the 6th month above the 50% benchmark showing growth in the manufacturing sector as well as the general Inland Empire economy; however the growth rate is anemic.”

“This month saw declines in the all-important Production Index (down from 56.3 to 51.6) and the New Orders Index (which declined from 51.6 to 48.5). Inflationary pressures continue to be a concern in the Inland Empire, with the Commodity Prices Index increasing from 59.4 last month to 63.6 this month mainly due to increase in the price of natural gas.  As one Purchasing Manager commented, “Natural gas has a big impact on our business.  Prices are very high.”  The Supplier Deliveries Index is virtually unchanged from last month (53.0 this month vs. 53.1 last month), as is the Employment Index which remained at 50.0 for the third month in a row.”