Business

Employment, Purchases, Drive Growth in Manufacturing Activity for April

The sector is enjoying a stronger-than-average seasonal increase.

The Houston Purchasing Managers Index registered 59.2 percent for April, up from 57.1 percent in March.

Ross Harvison is business survey chair with the Institute of Supply Management – Houston.

“We typically see a move up in the index in the April time frame. It’s a seasonal issue. However, with this move, we are back over the 36- and the 48-month average for the indices,” he said.

The jump was marked by strong growth in employment and purchases, as well as more modest increases in new orders and production.

“I would anticipate that we’ll continue to see growth at this level – which is very, very strong – at least through the end of the summer,” he said.

The index has a range of 0 to 100. Readings over 50 generally indicate production will expand over the coming months.

 

        HOUSTON PURCHASING MANAGERS INDEX
 The Houston Purchasing Managers Index (PMI), a short-term leading indicator for regional production, registered 59.2 in April, up from 57.1 in March, according to the latest report from the Institute for Supply Management-Houston.
 The PMI has a possible range from zero to 100. Readings above the neutral point of 50 indicate likely growth in production over the next three to four months; readings below 50 suggest contraction. With the April reading, the PMI has held at or above 50 for 56 consecutive months.
 The PMI is comprised of eight components: sales, production, employment, purchases, prices paid, lead times, purchased inventory and finished goods inventory. The month-to-month increase in the overall PMI was due to significant growth in four components: sales, production, employment, and purchases. .
 The Houston PMI is derived from monthly surveys of local purchasing managers representing various industries such as manufacturing, healthcare, electronics, finance and energy.

HOUSTON PURCHASING MANAGERS INDEX

The Houston Purchasing Managers Index (PMI), a short-term leading indicator for regional production, registered 59.2 in April, up from 57.1 in March, according to the latest report from the Institute for Supply Management-Houston.

The PMI has a possible range from zero to 100. Readings above the neutral point of 50 indicate likely growth in production over the next three to four months; readings below 50 suggest contraction. With the April reading, the PMI has held at or above 50 for 56 consecutive months.

The PMI is comprised of eight components: sales, production, employment, purchases, prices paid, lead times, purchased inventory and finished goods inventory. The month-to-month increase in the overall PMI was due to significant growth in four components: sales, production, employment, and purchases.

The Houston PMI is derived from monthly surveys of local purchasing managers representing various industries such as manufacturing, healthcare, electronics, finance and energy.

 

Share

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...

More Information