Inland Empire PMI Report on Business Amidst Challenging Conditions

By: Sharjeel Sohaib

β€’ 

Jun 9, 2023

 β€’ 

Utilize Our Platform

  • The latest Inland Empire Report on Business reveals a modest improvement in the Purchasing Managers’ Index (PMI) for May 2023. Still, caution is advised due to the region’s overall downward trend in recent months.
  • Manufacturing activity slowed, and the Employment Index increased, indicating positive job creation.Β 
  • Businesses in the Inland Empire continue to face supply chain challenges, cost pressures, and concerns about political uncertainties and the overall economy.

The latest report from the Institute of Applied Research and Policy Analysis at the CSUSB Jack H. Brown College of Business and Public Administration provides valuable insights into the state of the economy in the Inland Empire region. 

The report highlights the Purchasing Managers’ Index (PMI), key components such as the Production and New Orders Indices, employment trends, inflation, supply chain challenges, and overall concerns voiced by business leaders. Additionally, analyzing the implications and potential future trends has become crucial as the region navigates through ongoing challenges.

PMI and Subcomponents

The PMI for May 2023 showed a modest improvement, registering 50.0 compared to the previous month’s 46.9. However, caution is advised since the region has witnessed a downward trend in recent months. Two more months at or above the baseline have become necessary to help establish a new course of stability. 

The Production Index experienced a notable decrease from 50.0 to 47.9, indicating a slowdown in manufacturing activity. Similarly, the New Orders Index improved slightly to 43.8, but it has remained below 50 for the past 12 months, signaling a decline in new orders.

Employment and Inflation

While overall manufacturing activity showed signs of moderation, the Employment Index increased to 54.2, indicating a positive trend in job creation. However, concerns regarding finding and retaining skilled employees persist. 

On a positive note, the Commodity Price Index continued its decline, reflecting a decrease in inflation within the region. This drop in prices for imported materials showed mild relaxation to businesses, potentially mitigating cost pressures.

Supply Chain and Inventory

The Supplier Deliveries Index, which measures the speed of supplier deliveries, rose from 48.1 to 52.1. This rise indicates a slowdown in supply deliveries, which can pose challenges for businesses. The Inventory level increased to 52.1, suggesting a build-up of units, but 70.8% of respondents reported that their finished goods inventory remained unchanged. Only a minute percentage reported an increase, while others observed a decrease. Therefore, achieving a balance between production and sales remains a top priority for businesses in the region.

Business Outlook and Concerns

Optimism about the near-future state of the economy continued to decline, with no panelists believing it will be stronger in the coming quarter. Over half of the panelists expressed concerns about a weaker local economy, while the remaining 45% expect the economy to stay the same. The panelists’ remarks highlighted worries about slowing business, supply chain issues, cost control, political factors, and the overall economy.

Conclusion

The Inland Empire’s latest Report on Business underscores the challenges in the region’s economy. While some indicators show slight improvements, caution remains necessary due to the persistent downward trends in various sectors. Businesses continue to grapple with supply chain disruptions and inflation impact. Moreover, concerns regarding political uncertainties and the overall economic climate contribute to the prevailing caution among business leaders.

As the region moves forward, it will become essential to take proactive measures to address supply chain challenges, attract skilled talent, and adapt to changing market conditions. Additionally, policymakers and stakeholders must work together to create an environment conducive to business growth and investment. The Inland Empire can make informed decisions to resolve the current challenges and pursue a path of stability and growth by monitoring and analyzing economic indicators.

0 Comments

Submit a Comment

Connecting you with the best startups, people & events in the Inland Empire.

Support Startup News & Media!


Enjoying the startup news & media? Support us!

We have big plans, and we need your help!

Startempire Wire is a community of people working together to promote innovation, entrepreneurship, and investment in the Inland Empire. We provide resources and connect people with the startup culture.

We believe that the Inland Empire has all of the ingredients for success. This region just needs a platform to show the world what it can do – And this is exactly what Startempirewire.com is doing. Our goal is to act as a megaphone to connect the dots between the best startups, events, and people in the Inland Empire.

We have big plans, and we need your help! If you are passionate about creating a thriving local startup ecosystem, then we would like to invite you to join in contributing to the community by supporting us. You can do that by supporting us financially or by being an active contributor. In return, we will give you (depending on sponsorship level) free access to our content, other level based perks &Β  the opportunity to connect with a network of passionate people working to build a better future for all of us.

We cover the good and the bad of entrepreneurship, startups & business events; we do it with passion and purpose. If you like what we do, support us & please consider becoming a patron. Your support is essential for independent local startup media to survive & thrive.

You can make a regular one time donation to become a sponsor at any level, or you can choose to become a monthly or event sponsor.Β  Every little bit counts! Thank You

Verious B. Smith III

Founder, Startempire Wire

Related Articles

Benihana Temecula: A New Culinary Destination in Riverside County

Benihana Temecula: A New Culinary Destination in Riverside County

On September 29, Benihana Inc. will open its well-regarded Japanese teppanyaki and sushi restaurant chain in Temecula, California. Situated at 26420 Ynez Road within the Promenade Temecula, Benihana Temecula aspires to enhance the dining landscape of Riverside County....

Economic Growth in the Inland Empire: The IECE and Beyond

Economic Growth in the Inland Empire: The IECE and Beyond

The Inland Empire Center for Entrepreneurship (IECE) at California State University, San Bernardino (CSUSB), published its 2022 Impact Report. We look at the economic impact of IECE and what other organizations have done to drive economic growth in the Inland Empire...

Stay Up On Startempire News

Access Premium Content

Startempire Wire premium content access is free during the beta period of ourΒ  website.Β  Join during beta and get a grandfathered discount when we launch.

$5 for first month then $15 per month

Get Every Update

Would you like to receive Startempire Wire updates in your inbox? Subscribe below!

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Follow Us

Follow Startempire Wire on other social media channels.

0
My cart
Your cart is empty.

Looks like you haven't made a choice yet.