Houston’s economic growth picked up in June, according to the latest Houston Purchasing Managers Index (PMI) from the Institute for Supply Management–Houston. The headline PMI, which gauges overall economic activity based on a survey of supply chain executives, registered 54.0, up from May’s 51.0 and well above the 45 break-even signaling expansion. Growth was driven by the non-manufacturing sector, which registered a PMI of 55.0, while manufacturing contracted modestly with a PMI of 48.5.

All three PMI components most closely linked to Houston’s growth signaled accelerating growth in June:
• Sales/New Orders ramped up significantly, increasing to 59.4 in June from 51.2 in May.
• Employment accelerated modestly, growing to 51.8 from 50.9 over the month.
• Lead Times also signaled expansion at 52.7, increasing from 51.3 a month earlier.

On an industry-specific basis:
• Construction, professional services, and trade, transportation, and warehousing reported strong expansion.
• Nondurable goods manufacturing reported modest expansion.
• Oil and gas extraction and durable goods manufacturing reported 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