The National Association of Purchasing Management Houston Inc.,

..........HOUSTON, August 12th - The economy in Houston grew in July for the third consecutive month, although at a slower rate than in June. The PMI (Purchasing Managers Index) was 51.3 for July compared to 52.3 in June. Prior to the past three months the PMI reflected economic contraction for seven consecutive months (October 01 through April 02). The Sales Index was a primary driver of the rising PMI in the past month and has shown growth for three 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 remained in contraction for a tenth consecutive month, but at a reduced rate of loss and with two thirds of survey respondents reporting no change in their organizations' manpower levels. This would seem to indicate that only a small segment of local industry is still shrinking its staff," said Doug Miller, Chairman of the NAPM-Houston Business Survey Committee.

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

.........."We were disappointed to see the Production index fall in July after having risen in June, but it seems to be somewhat reflective of what the national economy is doing and of instability in many areas that impact economic growth or lack thereof," said Miller. "We may continue to see fluctuations of growth and contraction for several months…until several positive factors can combine to provide growth energy."

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