Houston Industrial Activity Plateaus In October

Houston economic activity held steady in October, according to the latest survey of local purchasing managers.

The Houston Purchasing Managers Index registered 60.8 in October, maintaining the level set in September.

The PMI tracks eight indicators of local economic activity. Mike Valant is business survey chair with the Institute of Supply Management – Houston

“The strongest were the purchased inventory and the finished goods inventory, both of which declined ten points. That means that demand is consuming the new material faster than they can replenish, and they’re also selling off the finished goods faster than they can get the production to catch up with them.”

Purchases and prices paid also gained in October. On the down side, employment and production both lost ground from September, while sales turned in its weakest performance of the year. Lead times remained virtually unchanged.

The PMI has a range of 0 to 100, with readings over 50 pointing to near-term production gains.

Source: Institute of Supply Management – Houston


Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined News 88.7 in January 2011. Since arriving in Houston, he has reported on the many changes wrought on the region’s economy by the revolution in domestic oil and gas production. His non-energy reporting runs the gamut from white-collar crime to cattle ranching. His work has aired on...

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