AUSTIN AREA SUMMARY REPORT ON BUSINESS February 2018
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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 50.5 The Austin Purchasing Managers Index for decreased from January Indexes that are INCREASING and higher than January: Production, New Orders, Employment, and Order Backlog. Indexes that are DECREASING but slower than January: Inventory, Prices, and Supplier Deliveries. Indexes that are below 50: Inventory, Prices, and Employment. No change: None. For Immediate Release: March 7, 2018 AUSTIN, TX PURCHASING MANAGER S INDEX FOR decreased to 50.5 INDEXES THAT HAVE EXPANDED: Production, New Orders, Employment, and Order Backlog. INDEXES BELOW 50: Inventory, Prices, and Employment. Key Indicators: PMI Index decreased from 54.4 to Employment Index increased from 33.3 to Production Index increased 33.3 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, Page 2 of 6
3 Purchasing Manager's Index (PMI) Feb-17 Mar-17 Apr-17 May- Jun-17 Jul-17 Aug- Sep- Oct-17 Nov- Dec- Jan-18 Feb Series PMI: 50.5 Average for 12 months =59.8 High =81.5 (Mar-17) Low =39.7 (Aug-17) 10 Employment Index Series Employment Index: 43.8 (Expanding) Average for 12 months =53.8 High =89.6 (Jul-17) Low = (Sept-17) Page 3 of 6
4 10 New Orders Index Series New Orders Index: 81.3 (Expanding) Average for 12 months =78.5 High =88.0 (May-17, Dec-17) Low =25.0 (Feb-17) 10 Production Index Series Production Index: 62.5 (Expanding) Average for 12 months =58.7 High =89.6 (Jul-17) Low =25.0 (Feb-17) Page 4 of 6
5 10 Inventory Index Index Inventory Index: 43.8 Average for 12 months =55.7 High =88.0 (May-17) Low = (Sept-17) Supplier Delivery Index Series Supplier Delivery Index: 62.5 Average for 12 months =59.0 High =84.0 (Apr-17, Jun-17) Low =25.0 (Aug-17) Page 5 of 6
6 Price Index Series Price Index: 43.8 Average for 12 months =53.0 High =87.0 (May-17) Low = (Sept-17) Comments: (Member): Orders have softened for Q3 forward. (Chair): 10.8% response rate (4 out of 37); a 33.3% increase from the January response rate of 8.1% (3 out of 37). Page 6 of 6
AUSTIN AREA SUMMARY REPORT ON BUSINESS April 2017
INSTITUTE FOR SUPPLY MANAGEMENT- ISM AUSTIN, INC. P.O. Box 26155 Austin, Texas 78755-0155 Steven Leatherwood, CPSM, MCIPS Econ-report@ism-austin.org AUSTIN AREA SUMMARY REPORT ON BUSINESS Region Economy
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