Inland Southern California's factories continue to expand production but don't appear to need any additional employees to do it, a report released Tuesday indicates.

The Purchasing Managers Index for San Bernardino and Riverside counties fell to 50.3 in November from 55.2 the previous month, the Institute of Applied Research at Cal State San Bernardino reported. A reading above 50 indicates the area's manufacturing sector is expanding, although the decline means the pace of growth is slowing down.

It was the second consecutive month the Inland factory index was above 50. Economists usually look for three months of similar readings before viewing it as a trend.

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The index is watched closely because it suggests whether factories may be hiring in the next few months or ordering parts from local suppliers.

But this report indicates that if the area's factories continue to rev up, it will probably happen without adding employees, possibly for as long as a year, and several plant managers agreed with that assessment.

Nationally the manufacturing index fell to 53.6 from 55.7 in October, the Tempe, Ariz.-based Institute for Supply Management reported. Economists are encouraged by an increase in new orders, which indicates production could ramp up in the future.

The Inland survey showed a steep decline in the index that measures employment, which suggests the same number of people could be working harder and producing more goods.

"We're at a key point, and employers are being extremely cautious before they commit themselves to more people," said Nancy D. Sidhu, chief economist for the Los Angeles County Economic Development Corp.

"If orders do come in, they'll either hire temp workers or keep guys on overtime," she said.

Companies are cutting back on personnel in different ways, said John Anderson, director of aerospace and defense for Torrance-based California Manufacturing Technology Consulting. More businesses are furloughing employees, and one even sends one-sixth of its managers home for entire weeks, he said.

"There are companies we go to now and ring the doorbell, and there's no receptionist," Anderson said.

There were an estimated 92,700 Inland workers employed in manufacturing in October, the most recent month for which there is data, according to the state Employment Development Department. That's down from a peak of more than 123,000 in 2006.

Terry Herrmann, director of materials for PneuDraulics Inc., a Rancho Cucamonga firm that makes aviation components, said business seems to have stopped slipping but is still off about 45 percent from where it was a year ago. Herrmann said he doesn't foresee hiring.

"For us to have stabilized as quickly as we have is quite satisfying," Herrmann said. "But we'll have to be content with maintaining this level of business for at least another year."

At California Quality Plastics Inc., an Ontario company that makes aquariums, trophy cases and other items, business appears to be improving. President Bob Kaplan said the company also makes items such as lighting fixtures that are installed in newly finished buildings.

The construction segment of the Inland economy is not roaring back, but overall he believes he's seen the worst of it.

"But it's going to be a very slow buildup," Kaplan said. "I'm not looking for any exciting growth next year. We'll take it slow and easy and see what happens, but there's not this high level of confidence that says, 'Let's go hire.' "

Redlands based economist John Husing agrees that economic conditions have bottomed out in the Inland area, despite the sharp decline in Cal State's November manufacturing numbers.

"It will be a long recovery, and month-to-month, some of these figures will bump up and down," Husing said.

The Associated Press contributed to this report.

Reach Jack Katzanek at 951 368-9553 or at jkatzanek@PE.com