According to Shel Bockman and Barbara Sirotnik (Co-Directors of the Institute of Applied Research), and Lori Aldana (Project Coordinator, Institute of Applied Research), "Although this month’s PMI (60.9%) decreased slightly from last month’s figure (62.5%), it continues to stay well-above the baseline 50% mark for the seventh consecutive month. This indicates growth for both the local economy in general and for the manufacturing sector in particular."
"The Employment index (60.0%) increased this month from last month's 50.0%. This increase in the level of employment is especially important in that it has been the missing ingredient for a sustained and general recovery in the local economy. Production (61.7%) and New Orders (66.7)% -- two of the key components of the PMI -- registered a slight decrease from last months' figures, but continue to be well-above the 50% baseline, indicating that Purchasing Managers anticipate that consumer purchases will increase in the coming months. This is the eighth month that those two indicators have been above the 50% baseline. The Commodity Price Index decreased from last month's 78.1 but still remains high (71.7).
Purchasing Manager’s confidence in the future state of the local economy continues to grow, with over a third (36%) now projecting that the local economy will be stronger in the coming quarter (up from last month's 36%). This figure is at its highest level since August 2009.
Read more of the May 2010 Report