The Houston Purchasing Managers Index registered 58 in August, up nearly a full point from July. Mike Valant is business survey chair with the Institute of Supply Management — Houston.
“Purchases started up, which is kind of interesting, considering sales didn’t go up as much, but sales did come up. Production went up. Prices are starting to go up too, and I’m experiencing that myself. Inventories, by the way, both went down, which is a good indicator we’re starting to consume. Employment only dropped just a smidgen, so I don’t think that’s enough to be of any concern, 'cause it’s still very up from February and March.”
Valant says skilled workers — such as welders, electricians, and carpenters — are in short supply. The high demand for such workers is helping to push up wages.
The PMI has a range of 0 to 100, with readings over 50 pointing to near-term production gains.