The manufacturing activity in the Dominican Republic experienced a notable contraction in December 2025. The Monthly Index of Manufacturing Activity (IMAM) was at 49.1 points, below the threshold of 50 that separates expansion from recession, after a solid 59.4 in November. This decline is mainly due to decreases in sales and production, pillars of the industrial sector.
Key variables that drove the decline
The IMAM, adapted from the global PMI to the Dominican context, measures five components: sales, production, employment, inventories, and delivery times. In December, four of them retreated. The volume of sales plummeted from 63.54 to 48.30 points; production from 65.07 to 47.90. Employment fell from 51.85 to 48.04, and raw materials inventories from 58.33 to 52.94. Only supplier delivery times rose, from 46.30 to 52.94, reflecting possible logistical delays.
Historical context of the manufacturing activity
Importance of the indicator for the economy
The IMAM is prepared through rapid surveys of purchasing managers of companies associated with the Association of Industries of the Dominican Republic (AIRD). Collected in the first 20 days of the following month, it offers an early view of trends before official data from the Central Bank. Historically, the manufacturing sector represents around 15% of the Dominican GDP, with emphasis on free zones that generate thousands of jobs. In 2024, the IMAM averaged above 52, driven by post-pandemic recovery, but December marks the first decline below 50 since mid-2023, according to reports from the AIRD.
Experts like economists from the Technological Institute of Santo Domingo (INTEC) attribute this deceleration to persistent inflation and lower external demand, exacerbated by geopolitical tensions affecting textile and agro-industrial exports. The year closed with a 2.5% annual manufacturing growth, below the 4% projected, which generates concern for employment in a sector that supports over 300,000 workers.
- Sales: Greater impact, with a 24% intermonthly decline.
- Production: Similar reduction, affecting supply chains.
- Employment and inventories: Signs of preventive adjustment.
Implications for 2026
This contraction in manufacturing activity warns of possible chain effects, such as lower investment and internal consumption. The AIRD urges fiscal stimulus policies to reverse the trend. Monitoring the next IMAM will be key to predicting whether manufacturing activity will rebound or deepen the economic slowdown in the Dominican Republic.
