Houston PMI Reaches Highest Level Since Recession
by: Andrew Schneider, December 12, 2011 2:12:00 pm
The Houston Purchasing Managers Index reached 61.6 in November. That marks the index’s highest level in three years and an increase of nearly 37% from its low point in March 2009.
The PMI has a range of 0 to 100, with readings over 50 pointing to near term production gains.
A jump in employment led the good news. Mike Valant is survey chairman with the Institute of Supply Management – Houston.
“Twenty-eight percent of our respondents had increased employment, and that’s great, and only 10% actually reduced staff.”
All told, 90% of survey respondents said they’d either increased hiring or kept employment levels the same.
In addition, stronger sales pushed up production. Lead times dropped, suggesting manufacturing capacity is catching up to demand.