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Houston’s economy expanded at a steady pace in August, according to the most recent Houston Purchasing Managers Index (PMI) prepared by the Institute for Supply Management-Houston. The overall PMI, which measures broad economic activity according to a survey of supply chain executives, was 52.8 in August, almost unchanged from 52.3 in July and above the break-even point of 45, indicating economic expansion. Manufacturing slipped from slight expansion to slight contraction, while non-manufacturing expanded at its fastest pace this year.

Prices paid for inputs had been rising since April when the U.S. implemented new tariffs. However, in August they were essentially flat with the prices paid index at 50.1.

All three of the PMI indicators that most strongly correlated with Houston’s economic growth expanded:
• Employment recorded a value of 51.2, marking the first month of expansion since April.
• Sales/new orders came in at 55.6, indicating expansion that is a bit slower than July’s 58.6.
• Lead times at 53.6 continued to increase at a pace virtually unchanged from July’s 53.5.

On an industry-specific basis:
• Health care, wholesale and retail trade, and transportation and warehousing reported strong expansion.
• Oil and gas exploration, nondurable goods manufacturing, and professional and business services reported moderate expansion.
• Construction and durable goods manufacturing reported moderate contraction.
• No sectors reported significant 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

Colin Baker
Manager of Economic Research
Greater Houston Partnership
[email protected]

Clara Richardson
Analyst, Research
Greater Houston Partnership
[email protected]