The Houston Purchasing Managers Index rose four tenths of a point in July. Stronger production and purchases helped boost the PMI back to its May level of 59.6.
Mike Valant is business survey chair with the Institute of Supply Management — Houston.
“It looks like, from what I can see, that the inventories were being consumed in the previous months and they were not refilling them, and apparently they’ve gone to an effort to refill. Plus, sales did go up six points this month also.”
Valant says purchasing managers are sounding a more cautious note for the fall, with many inclined to delay business decisions until after the presidential election.
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.
Graph courtesy of ISM - Houston. Inc.