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Business

Hiring, New Orders Lift Houston Economy In May

Purchasing managers seem confident of near-term growth, despite hints of inflation.

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The Houston Purchasing Managers Index registered 59.2% for the second month in a row.

“We were really pleased to see new orders, production, and employment move up from already strong levels that we had in April,” says Ross Harvison, business survey chair with the Institute for Supply Management — Houston. “Each of those indicators are a good gauge of future manufacturing performance.”

Those surveyed reported price increases encompassing a wide range of commodities, as well labor costs at Asian suppliers.

“While moderate price increases generally confirm a strong economy, significant increases can lead to a slowdown,” Harvison says. “The jump that we saw this month is quite a bit larger than any of us anticipated. We need to watch that over the next few months.”

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

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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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