| National Association of |
| Purchasing Management - Houston, Inc. |
| PO Box 771203 - Houston, Texas
77215-1203
|
NAPM - HOUSTON BUSINESS REPORT |
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Press
Release |
PMI
UP FOR 4TH MONTH |
JOB
LOSS SLOWS |
| ..........HOUSTON, September 10th - The Houston
economy grew in August for the fourth consecutive month,
as the PMI (Purchasing Managers Index) rose from 51.3 in
July to 53.0 for the past month. This was the highest PMI
reading since August 2001 and marks eight months of
fairly steady growth in the PMI since its low point in
December 2001. ..........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. .........."The Production rate leveled in August after being negative in 7 of the last 10 months," said Doug Miller, Chairman of the Business Survey Committee for NAPM-Houston. "That fact, plus an improvement in the Sales rate for the fourth month in a row seem to imply continuing growth in the economy for at least the near future." ...........There are eight components of the PMI, including Sales, Production, Employment, Purchases, Prices Paid, and Inventory levels. ........."The Employment index, although reflecting job shrinkage for the past eleven months, has improved steadily for the past few months and may be making a push into positive territory very soon," said Miller. "The combined effect of the factors surveyed seems to point toward a foundation being built upon which sustained growth could be based. We are also encouraged to see that inflation is virtually non-existent and inventories, for the most part, have been brought down to levels that do not represent a drag on future economic growth." |
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