Houston Economy Likely to Slow by November
by: Andrew Schneider, July 11, 2012 5:07:00 am
The Houston Purchasing Managers Index dropped to 59.2 in June – down nearly half a point from May. Falling prices paid, weaker sales, and slower production combined to pull the index down.
Mike Valant is business survey chair with the Institute of Supply Management — Houston.
“It just looks like the people are concerned about a lot of the things the government’s doing. One of the comments is that the Supreme Court decision to support the health care tax will have significant impact on their 2013 expansion plans. I had that referred to from three different industries — financial, oil and gas, and manufacturing.”
On the positive side, the finished goods inventory was down from May. A fall in that reverse indicator means a rise in consumption over produced goods. Employment rose slightly from the previous month.
The PMI indicates likely shifts in production three or four months in advance. It has a range of 0 to 100, with readings over 50 pointing to near term production gains.