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Economic activity in Houston expanded at a slower pace in April than March, according to the most recent Houston Purchasing Managers Index (PMI) prepared by the Institute for Supply Management-Houston. The PMI slipped 3.2 points to 51.6 in April, down from 54.8 in March. Readings over 50 indicate expansion in Houston’s economy, below 50, contraction. Manufacturing sector activity reported a significant rate of contraction while nonmanufacturing activity continues to expand but at a much slower rate.
Two of the three underlying indicators that have the strongest correlation with the Houston economy (employment and lead times) continue pointing to modest economic expansion. The third (sales/new orders) is now pointing to very slow economic contraction.
The finished goods inventory index, the underlying indicator that has the strongest inverse correlation with economic activity, fell 2.8 points to 53.3, giving a modest signal of potential contraction.
Regarding the two major subcomponents:
On an industry specific basis:
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 on the index, click here.
Prepared by Greater Houston Partnership Research
Patrick Jankowski, CERP
Chief Economist
Senior Vice President, Research
pjankowski@houston.org
Clara Richardson
Research Associate
Greater Houston Partnership
crichardson@houston.org
Houston's PMI registered 51.6 in April '23
Review the latest data on jobs in the Houston region.
Review the latest data on inflation in the Houston area.
Review the latest information on home sales in the Houston region.