When the PMI, which measures manufacturing activity in the region, records a measurement of more than 50, it indicates growth in the area's manufacturing sector. In April, four out of the index's five key indicators hovered above 50, although production and employment did decline slightly from March. Production dropped from 52.3 to 51.3, while employment decreased from 54.7 to 51.3. Supplier deliveries remained unchanged at 55.3, while new orders increased from 45.3 to 51.4 and inventories rose from 37.8 to 43.4.

"An increase in purchasing managers' optimism, along with an increase in new orders may be a glimmer of hope for higher PMI figures in the months to come," says a new report on the findings prepared by the Institute of Applied Research and Policy Analysis at California State University, San Bernardino. However, the report also points out that there are "factors that still remain a concern," such as the situation in Iraq, increases in commodity prices and the statewide budgetary crisis, "all of which may have an impact on the PMI in the future months."