The judgement is in: weakness in the local manufacturing sector is more than just a blip on the radar.
It’s become a trend.
That’s what researchers at Cal State San Bernardino said today in a report released by the Institute of Applied Research and Policy Analysis.
July’s purchasing manufacturer’s index — a barometer of how well local manufacturers are fairing — came in at 41.2. It’s the second-lowest index reading since the report’s inception in 1993.
The index is based off a survey of commodity prices, production numbers, new orders, inventory numbers, employment numbers and supplier deliveries at companies.
In July, production and new orders — two key economic indicators — dropped sharply.
Inventory, employment and supplier deliveries “continue to manifest weakness,” the report says.
“If the PMI continues to remain this low for the next two months, this will indicate that the local economy is in recessionary mode,” the report states.
Also, 44 percent of purchasing managers surveyed said they think the Inland Empire’s economy will continue weakening, while another 46 percent said things will remain sluggish.
The news comes on the heels of June’s report, which said oil and raw material prices were eating away profit from local companies’ bottom lines at a record rate.
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