Business

Purchases — and Prices Paid — Lift Houston Economy In August

Houston economic activity rose in August, following a three-month plateau.

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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.

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Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew heads Houston Public Media's coverage of national, state, and local elections. He also reports on major policy issues before the Texas Legislature and county and city governments across Greater Houston. Before taking up his current post, Andrew spent five years as Houston Public Media's business reporter, covering the oil...

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