Nov 03, 2009 (Inland Valley Daily Bulletin - McClatchy-Tribune Information Services via COMTEX News Network) --

A key indicator of business activity in the Inland Empire's manufacturing sector skyrocketed in October from the previous month's lows, growing at a pace not seen since mid-2007, according to a report released Monday.

"It's noteworthy," stated the report, which is based on a survey of local purchasing managers and published by Cal State San Bernardino's Institute of Applied Research and Analysis.

October's index was 55.2. A number above 50 means the local manufacturing sector is growing. A number below 50 means it's contracting.

The beleaguered industry had finally begun showing positive signs in May, but it has struggled to stay above the growth line since then.

It had shrunk in September at about the same pace it did in August, but before that, May through July's data showed positive growth numbers.

"The production index increased to 57.9 from 47.5, and new orders increased from 46.3 to 59.5," said Shel Bockman, co-director of the institute. "The fact that these two key components of the PMI increased indicate that some manufacturing companies anticipate increasing purchases from consumers."

But "it is still too early to tell whether this is a signal that the end of the recession in the Inland Empire is near or just another indication of a volatile economy," he said in the report.

matthew.wrye@inlandnewspapers.com

(909) 483-9391

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