The Houston Purchasing Managers Index dropped to 58.4 in April, down nearly three points from March. Mike Valant is business survey chair with the Institute of Supply Management — Houston.
“I don’t think there should be any concern, because we had such a huge increase in February, and then March stayed up there. So if we’re already up and we’re staying the same, then we’re still up.”
The survey reported sales and purchased inventory were both down from March. By contrast, employment remained strong.
“Forty-one percent of the respondents had increases this month, and 49% stayed the same. That’s 90% the same or better than last month, and last month was a big increase, so that’s excellent from the employment side.”
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.