The Partnership sends updates for the most important economic indicators each month. If you would like to opt-in to receive these updates, please click here.
Estimated Read Time: 1 minute
Economic activity in Houston expanded at a modestly faster pace in August than July. Manufacturing reported contraction at a very slow pace and nonmanufacturing expanded at a minimally faster rate than last month, according to the most recent Houston Purchasing Managers Index (PMI) prepared by the Institute for Supply Management-Houston. The overall PMI rose 1.5 points to 53.6 in August, up from 52.1 in July. Readings above 50 indicate the region’s economy is expanding.
All three of the underlying indicators that have the strongest positive correlation with the Houston economy point to modest or strong economic expansion.
The finished goods inventory index, the indicator that has the strongest inverse correlation with growth, rose 2.5 points to 54.7, giving a stronger 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, click here.
Prepared by Greater Houston Partnership Research
Patrick Jankowski, CERP
Senior Vice President, Research
Greater Houston Partnership
Houston's PMI registered 53.6 in August '23