Houston Economic Activity Rebounded in August
by: Andrew Schneider, September 14, 2011 6:09:00 am
The Institute for Supply Management — Houston's Purchasing Managers Index reached 61.3 in August. The PMI has a range of 0 to 100, with any reading over 50 indicating near-term production growth. Increases in employment and especially in purchasing helped drive the recovery.
ISM — Houston's Mike Valant.
“Purchases relates to either demand or forecasts, and it looks, based upon the current environment like they’re definitely having increase in demand, which relates to increased production.”
The survey also shows prices continued to rise last month. Japan’s March earthquake and tsunami is still constricting supplies of electronic components. In addition, the health care sector is reporting shortages and price increases for some pharmaceuticals.
The August pickup in Houston’s PMI in comes after a drop to 58.3 in July, down from 61.4 in June. July’s reading, while positive, was the first time the index dropped in nearly two years.