After months of pessimism in the manufacturing industry, Houston manufacturing executives reported feeling more positive about the near-term future of their sector, according to the Houston Purchasing Manager’s Index, a well-regarded measure of manufacturing activity in the region.
According to the index, manufacturing activity in the Houston region expanded last month, registering 51.6 in August, up slightly from July. However, it was still close to a neutral reading, which is 50. Readings above 50 indicate industry economic expansion and below 50 indicate a contraction.
It’s a sign that the local sector could be recovering, good news for the Houston economy. In July, the Houston Purchasing Managers Index had forecast negative growth for the first time in two years, and national manufacturing indicators were falling every month. That was a concern for business leaders and economists, as manufacturing is viewed as a leading economic indicator, meaning its fortunes can predict the direction of economic growth.
Jago Times "English Edition" Best Online Newspaper