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Monthly Update: Purchasing Managers Index

January '24, Latest Data
Published on 2/12/24

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Economic activity in Houston continued to expand in January. The region’s nonmanufacturing sectors expanded at a faster pace than in December while manufacturing expanded for the first time in three quarters, according to the most recent Hou¬ston Purchasing Managers Index (PMI) prepared by the Institute for Supply Management-Houston. 

The overall January PMI rose 1.2 points to 52.6, up from 51.4 the month before. Readings above 50 indicate overall expansion in the economy, below 50, contraction. 

Regarding the two major subcomponents: 

  • The Houston Manufacturing PMI rose 6.2 points to 55.0, suggesting strong expansion.
  • The Houston Non-Manufacturing PMI rose 0.2 points to 52.1 showing moderate expansion. 

Two of the three underlying indicators that have the strongest positive correlation with economic growth—sales/new orders and employment—are pointing to expansion. The third indicator with a strong positive correlation (lead times) continues to give a modest signal for contraction. 

  • The sales/new orders index rose 1.2 points to 56.3. 
  • The employment index rose 3.5 points to 52.9, indicating renewed expansion after signaling contraction in December.  
  • The lead times index fell 2.0 points to 47.5. 

The finished goods inventory index, the underlying indicator with the strongest inverse correlation with growth, rose 2.1 points to 49.8. Being so close to the neutral point of 50.0 suggests neither contraction nor expansion.

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

Patrick Jankowski, CERP
Chief Economist
Senior Vice President, Research
pjankowski@houston.org

Leta Wauson
Research Director
Greater Houston Partnership
lwauson@houston.org

 

Economy Key Economic Indicators
52.6

Houston's PMI registered 52.6 in January '24

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