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 PMI SLIGHTLY UP
JOBS STILL DISAPPEARING
            HOUSTON, December 10th - The Houston PMI (Purchasing Managers Index) finished the month of November at 50.7, slightly above the break-even point, after being just under that point in September and October. The meandering of the PMI over the past few months seems to be a clear indicator of the lack of motivation, either positive or negative, that is available in Houston's current, and probable near-term future, picture. 

            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. 

“Sales and Production numbers both dropped in November for the third consecutive month," said Doug Miller, Chairman of the Business Survey Committee for NAPM-Houston, Inc.  "This is not very encouraging as we prepare to take on the first quarter of the new year."

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

            “Employment numbers also fell in November for the 14th month in a row.  And purchases were reduced again for the 15th consecutive month," said Miller.  "Clearly there is no real confidence that we are going to see significant economic improvement in the next several months.  The question now becomes 'what of the entire of 2003?' What factors must and/or will develop that can pave the way and bring some positive forces to bear on Houston's economy before 2003 becomes history?  Those factors will have to start taking shape very soon."

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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