National Association of
Purchasing Management - Houston, Inc.
PO Box 771203 - Houston, Texas 77215-1203

NAPM - HOUSTON BUSINESS REPORT


For further information, contact
Douglas R. Miller, C.P.M. - 713-988-7306

Press Release

ECONOMY GAINS SLIGHTLY
PURCHASES INCREASING
EMPLOYMENT WEAKENS
..........HOUSTON April 10th, - The Houston PMI (Purchasing Manager's Index) was nearly level from February through March. The index for March was 48.6, just ahead of February's 48.5. Sales and Production levels were both reported to be slightly softer over the past month, although still significantly better than for the preceding four months.

..........The Houston PMI, which can range from 0 to 100, is a leading indicator for industrial production, typically forecasting change by three to four months. A reading above 50 indicates that the Houston economy is generally expanding. A reading below 50 indicates the economy is generally contracting. The PMI is based on a monthly survey of some 80 purchasing executives in leading Houston industries, including oil and gas exploration and production, manufacturing, engineering and construction, chemicals, distribution, business and financial services and healthcare, among others.

.........."Employment activity went very noticeably south in March, reacting to slightly weakened Sales and Production numbers, at least to some extent, while Purchases slowed their seven-month long descent and appeared to be trying to go positive," said Doug Miller, Chairman of the NAPM-Houston Business Survey Committee. "It may be that a perception is developing that will stimulate a reversal of the inventory divestiture that has been taking place for the past 3-1/2 years. If Sales and Production numbers can mount a sustained upward track, inventory re-building will be one of the primary exciters of that movement."

..........There are eight components of the PMI, including Sales, Production, Employment, Purchases, Prices Paid, and Inventory levels.

.........."As the national economy continues strengthening, Houston will also see economic improvement, and although as consumers we don't like it, if higher gasoline prices are upon us, that's a definite plus for Houston's overall economic growth, benefiting all segments of our economic landscape," said Miller.


The NAPM-Houston Business Report began publication in January 1995
Subscriptions to the report are available through NAPM-Houston.
National Association of Purchasing Management - Houston, Inc. is an affiliate
Of the Institute for Supply Management
Copyright 2002 by NAPM-Houston, Inc. All Rights Reserved