AUSTIN AREA SUMMARY REPORT ON BUSINESS April 2017
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1 INSTITUTE FOR SUPPLY MANAGEMENT- ISM AUSTIN, INC. P.O. Box Austin, Texas Steven Leatherwood, CPSM, MCIPS AUSTIN AREA SUMMARY REPORT ON BUSINESS Region Economy Main Index Comments Austin Contracting 45.2 The Austin Purchasing Managers Index for decreased from March Indexes that are INCREASING and higher than March: New Orders, Prices, Supplier Deliveries, and Order Backlog. Indexes that are DECREASING but slower than March: Employment, Production, and Inventory. Indexes that are below 50: None. No change: None. For Immediate Release: May 8, 2017 INDEXES BELOW 50: None. Key Indicators: AUSTIN, TX PURCHASING MANAGER S INDEX FOR decreased to 45.2 INDEXES THAT HAVE EXPANDED: Employment, Order Backlog. PMI Index decreased from 47.2 to Employment Index decreased from 55.3 to Production Index decreased from 78.0 to New Orders increased from 78.0 to The Institute for Supply Management, Austin Inc. (ISM-Austin) has completed its Report on Business for Austin and the surrounding area. This report is modeled on the widely-watched Report on Business published by the Institute for Supply Management (ISM), ISM Austin s parent organization. Readings below 50 percent indicate that the overall economy is generally contracting. Readings above 50 percent indicate that the overall economy is generally expanding.
2 Purchasing Manager s Index (PMI) About the PMI The PMI is a composite Index based on diffusion indices calculated for five different areas on which manufacturing & non-manufacturing Purchasing Managers are polled New Orders, Production, Employment, Supplier Deliveries and Inventories. Diffusion indices have the properties of leading indicators and are convenient summary measures showing the prevailing direction of change and the scope of change. They are calculated on a formula and are adjusted monthly on factors published by the U.S. Department of Commerce. The diffusion index for each area has different weights, relative to the importance attached to each factor. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~ ISM Austin was chartered in 1971 as the Austin Purchasing Managers Association and currently has almost 200 members in the Austin area. ISM Austin sponsors the monthly poll of Purchasing professionals in the Austin area and has been publishing a Report on Business for the Austin area for over 35 years. These Purchasing Managers are the primary buyers of manufacturing & non-manufacturing goods and services for their companies. ISM Austin is an affiliate of the Institute for Supply Management (ISM). We invite Purchasing Managers to participate in this important activity; to participate, please your name, company name, and your address to Steven Leatherwood, CPSM, MCIPS at econ-report@ism-austin.org. Your participation in this survey poll will help interpret and reflect economic activity in the Austin area more accurately. This Report is compiled from aggregated data (to preserve the confidentiality of the sources). The Charts for the leading indicators (Employment, New Orders, Production, Inventory, and Supplier Delivery & Prices) which constitute the Report on Business are available on ISM Austin s website, Index Jan- Feb- Mar- May- Jun- Aug- Sep- Oct- Nov- Jan- 17 Feb-17 Mar-17 Apr-17 Economic Direction PMI Decreasing Production Decreasing New Orders Increasing Inventory Decreasing Prices Increasing Employment Decreasing Supplier Delivery Increasing Order Backlog Increasing Page 2 of 7
3 Austin Area PMI: 45.2 Austin Area Employment Index: 52.0 Page 3 of 7
4 Note: Adapted from the April Jobs Report from the Greater Austin Chamber of Commerce ( Page 4 of 7
5 Austin Area New Orders Index: 84.0 Austin Area Production Index: 52.0 Page 5 of 7
6 Austin Area Inventory Index: 52.0 Austin Area Supplier Delivery Index: 84.0 Page 6 of 7
7 Austin Area Price Index: 84.0 Comments: (Member): High demand has resulted in increased production. We're at our highest production levels ever and there is unfilled demand. We've made capital improvements, hired additional personnel, and made systems more efficient to meet demand. (Chair): Still working on ways to increase survey participation due to 13.2% response rate (5 out of 38). Page 7 of 7
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