Up through June, Houston economic activity enjoyed a steady climb for twenty-one months in a row. But the latest Houston Purchasing Managers Index is revealing the region is starting to lose steam.
“Every one of the categories pulled back this month.”
Mike Valant is with the Institute for Supply Management – Houston, the group that publishes the index.
“Prices hit a peak in April and started down and came down again radically. They almost halved. Lead times, which had been moving up quite rapidly also, they really dropped down, I mean, from 23 to 5. Sales came down, and that was a peak in June. Production had already slowed down, so people were feeling it, although it came back a little bit. Employment has lowered. Purchases were down because demand was down.”
Overall for July, the Purchasing Managers Index registered 58.3, on a scale of zero to 100. While any reading over 50 indicates production is growing, July’s reading marks a slowdown: a three-point drop from the index’s June peak and its lowest level since January.