National Association of Purchasing Management Houston

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

HOUSTON’S ECONOMY STILL GROWING

JOBS UP FOR 10^TH MONTH

INFLATION IN CHECK

HOUSTON, August 10, 2001 ----- Houston’s PMI (Purchasing Managers Index), which measures the direction and rate-of-change of the Houston economy, was 58.5 in July, reflecting a still vital local economy for the twenty-ninth consecutive month.

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.

"All eight components of the PMI were positive for the month, indicating that a broad base still exists for continuing economic growth," said Doug Miller, Chairman of the NAPM-Houston Business Survey Committee. "Employment rose in July with a third of respondents reporting net job gains while only fifteen per cent witnessed manpower reductions in their firms."

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

"There seem to be very little evidence of inflationary pressure even though purchase commitments have shown net increases for the past twenty-one months," said Miller. "Sales and Production rates rose at a slightly slower rate than had been seen in the past several months, however, there are no real signs that Houston is following or is about to follow the national economic trend."

The NAPM-Houston Business Report began publication in January 1995.
Subscriptions to the report are available through NAPM-Houston.