When Purchasing Managers were asked if they had any overall remarks to offer, none chose to make negative/cautionary comments. Positive comments included: “Having a big spring and looking for a big summer (unusual in the heater business).” “Increased orders,” “New orders have slowed may be due to our open order backlog. Our shipments for Q1 were 45% over last year and last year was a good first quarter,” “All products available at same cost,” “Our purchasing is driven directly by customer demand, which has been increasing.”

In summary, the Conference Board national survey showed that U.S. consumers were slightly more confident in May than they were in April, and that confidence appears to have extended to the Inland Empire Purchasing Managers based on the new orders and production they have seen over the last month. The Conference Board survey also showed that Americans are becoming more bullish about the job market, which typically translates into increased purchases of goods, some of which are produced in the Inland Empire and add to our economic base.

One cautionary note (mentioned by one of our Purchasing Managers) is that hiring may decrease due to the upcoming July 1 minimum wage increase. Although the increase is relatively small at this point, companies are aware that overtime rates, vacation payments, and missed meal and rest period premium payments will all go up when the minimum wage increases. And of course, prices of goods may go up accordingly.

At this point all signs for the Inland Empire economy are positive. Next month’s report will hopefully continue that trend.

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 6/02/2014