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