Economic activity in Houston continued to expand in July according to the most recent Houston Purchasing Managers Index (PMI) prepared by the Institute for Supply Management-Houston. The headline PMI eased to 53.3 from 54.0 in June, signaling continued growth at a slightly more measured pace. Non-manufacturing remained a key source of strength, with a PMI of 55.0 marking a sixth consecutive month of expansion. Manufacturing remained in contraction territory for a second straight month, posting a PMI of 46.6 amid softer activity in durable goods.

All three PMI components most closely linked to Houston’s growth signaled growth:
• Sales/New Orders registered 56.5 indicating growth that slowed from June’s 59.4.
• Employment accelerated modestly, growing to 52.2 from 51.8 over the month.
• Lead Times also saw faster growth at 53.3, increasing from 52.7 a month earlier.

On an industry-specific basis:
• Construction, professional services, and trade, transportation, and warehousing reported strong expansion.
• Oil and gas reported significant expansion for the first time in five months.
• Nondurable goods manufacturing reported modest expansion.
• Real estate reported near neutral activity.
• Durable goods manufacturing reported strong contraction.

The PMI is published monthly by the Institute for Supply Management – Houston and is based on a survey of supply chain executives in the region. For additional information, click here.

Prepared by Greater Houston Partnership Research