According to a survey of purchasing managers, the California manufacturing economy is expected to grow at a slower pace in the first quarter of 2016 compared to the fourth quarter of 2015. The California Composite Index, measuring overall manufacturing activity, decreased from 58.4 in the fourth quarter of 2015 to 56.7 in the first quarter of 2016, indicating expansion but at a slower pace. This marks the third consecutive quarterly slowdown in the growth rate of the manufacturing sector. Production, new orders and employment are all expected to grow at a lower growth rate compared to the fourth quarter of 2015, while commodity prices are expected to increase at a higher rate. Weaker growth in our major trading partners’ economies, along with continued high value of the dollar are dampening the exports of manufactured goods produced in California.