The Houston Purchasing Managers Index dropped nearly two full points in October to 57.7. Six of the eight indicators that make up the PMI fell — the broadest drop in the index since 2009. The sharpest declines came in purchases and employment. Sales fell to their lowest level since April of last year.
“It’s very evident from comments by my people is they were afraid of what was going to happen in the election.”
Mike Valant is business survey chair with the Institute of Supply Management — Houston.
“There’s one note that I have that employment will be reduced by 1,000 people due to the election results. That was done after the election, some late response I received there. And that’s basically due to the tax repercussions for Obamacare and for the increased taxes that they seem to be threatened with.”
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.