Jul. 2--The regional economy may be teetering on the edge of an upswing again, according to the monthly Inland Empire Report on Business released Wednesday.

For the second month in a row, the report says the Purchasing Managers Index is above the 50 percent mark -- up 1.1 percent from May to June.

"One more month of a PMI above 50 will signal a turnaround in the manufacturing sector," the report states.

The report, prepared by the Institute of Applied Research at California State University, San Bernardino, says that manufacturers ramped up production and new orders by more than 2 percent over the last month. Officials said this is a clear i n d i c at o r that they're anticipating future jumps in consumer purchases.

However there is still uncertainty a m o n g p u rc h a s -- ing managers when it comes to the state of the local economy for the next quarter. While 18 percent believe it'll actually improve in the months to come -- the highest this figure has been since April 2007 -- nearly four in 10 think the economy is going to again weaken.

Some early signs of inflationary pressure could also be creeping in, with commodity prices up by nearly 10 percent from May. But the report states that inflation is still a "nonissue" in the Inland Empire, since the price index remains narrowly below the 50 percent mark.

Other positive signs include the employment index holding steady now at 47.2 percent from May to June, with supplier deliveries up 1.3 percent and inventory down.

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