News Column

Inland Empire Manufacturing Stalls in June

July 2, 2012

Andrew Edwards

The Inland Empire's manufacturing activity slowed in June as the goods producing sector did not grow for the first time in five months.

The Institute for Applied Research at Cal State San Bernardino released its monthly Report on Business today. Researchers survey purchasing managers in San Bernardino and Riverside to assess the health of the manufacturing industry.

Purchasing manager's responses are used to calculate a score in which any number greater than 50 signifies growth. June's score fell just below that benchmark at 49.7.

Last month's data does not provide enough information to reveal whether manufacturers can expect business to slow down or just had a less than ideal month in June.

June's report showed production and new orders dropped, but hiring actually increased. Researchers Shel Bockman and Barbara Sirotnik wrote in their report that the key question for manufacturers is whether consumers can be expected to buy enough goods later this year to push production to higher levels.

"Simply put, if consumers don't feel confident enough in the economy to buy, employment and production in manufacturing firms will drop," the researchers wrote.



Source: (c) 2012 the San Bernardino County Sun (San Bernardino, Calif.)


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