Business

Houston Economy Likely to Slow by November

The latest survey of purchasing managers finds the Houston economy faltered in June to its second-weakest performance of the year.

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.

 

PMI June 2012

 

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Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew heads Houston Public Media’s coverage of national, state, and local elections. He also reports on major policy issues before the Texas delegations in the U.S. House and Senate, as well as the Texas governorship, the state legislature, and county and city governments. Before taking up his current post, Andrew...

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