May 10, 2010
HOUSTON PURCHASING MANAGERS INDEX

The Houston Purchasing Managers Index, a short-term leading indicator of regional production, rose to 58.1 in April, reports the National Association for Purchasing Management-Houston. This reading—the best since June ’08—marks 13 consecutive months of improvement after the record low of 39.0 recorded last March. It’s also the seventh straight month above 50, signaling production gains on tap.

The PMI has a potential range from zero to 100. Readings above 50 indicate that production increases are likely over the next three to four months; readings below 50 foreshadow contraction. Because the Houston PMI has been above 50 for seven months, production gains already should be occurring here.

Employment has improved to its best reading since November ’08, with equal numbers of respondents reporting increases and decreases in employment. As recently as January, respondents expecting declines outweighed those expecting improvement by more than three to one. The trend for this component suggests that recent employment growth in the region should continue for the near future.

Patrick Jankowski
Vice President, Research
Greater Houston Partnership
1200 Smith, Suite 700
Houston, TX 77002-4400
Phone: 713-844-3616
E-mail: pjankowski@houston.org
Visit us on the World Wide Web at www.houston.org.

read more news