The Purchasing Manager’s Index for Puerto Rico for the month of February was recently released. This index is based on a survey of manufacturing facilities manager’s and is used as a main indicator for the current state of manufacturing on the island. A score above 50 in a category indicates positive performance.
The PMI for February came in at 57.9. Compared to the previous month of January, this is an increase of 1.9, or 3.4%. Compared to February 2021, this is a decrease of 4.9, or 7.8%. The Omicron outbreak in December caused a large decrease in the index. As such, this is the second consecutive month with an increase in the index. The index is currently at its highest point since April 2021.
The subcategories with the largest year over year decreases were new orders (-31%), production (-23%), and general (-28%). The categories with the largest year over year increases were own inventory (42%), prices paid (30%), and backlog (20%).
Manufacturing in Puerto Rico was one of the fastest industries to recover from the initial loss in employment in 2020 due to COVID. Employment in the industry is currently at its highest in years. Ongoing supply chain issues and inflation could lead to concern within the industry. For now, however, the industry seems to be on track to maintain its position as an economic leader in Puerto Rico.