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Economic activity in Houston expanded at a significantly faster pace last month, according to the most recent Houston Purchasing Managers Index (PMI) prepared by the Institute for Supply Management-Houston. The PMI rose to 52.7 in February, up from 50.8 in January. Readings over 50 indicate expansion in Houston’s economy, below 50, contraction.
All three underlying indicators that have the strongest correlation with the Houston economy, sales/new orders, employment, and lead times, now point to modest expansion.
The finished goods inventory index, the underlying indicator that has the strongest inverse correlation with economic activity, fell 3.9 points to 49.1, giving a modest signal of economic expansion.
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 52.7 in February '23
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