Monthly Update: Purchasing Managers Index
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Economic growth in the Houston area slowed in April, 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 through a survey of supply chain executives, was 48.5 in April, a slight decrease from 49.7 in March. Despite the downward trend seen in the first months of ‘25, the overall economy is still expanding, as indicated by a PMI above the neutral point of 45. Manufacturing increased to a PMI of 48.9, while non-manufacturing dropped to 48.5.
Two of the three PMI indicators that most strongly correlated with Houston’s economic growth contracted while one expanded:
- Sales/new orders stayed in contraction territory at 49.3, down slightly from 49.4 in March.
- Employment dropped to 45.5, slipping into contraction territory after expanding in March.
- Lead times increased to 53.1 following a few months of contraction.
The prices paid indicator saw a sharp increase in both manufacturing and non-manufacturing sectors. Price growth in April likely resulted from new tariffs on imported goods and commodities.
On an industry-specific basis:
- Health care, wholesale/retail trade, and transportation and warehousing reported strong expansion.
- Durable goods manufacturing reported moderate expansion.
- Non-durable goods, construction, and professional and business services reported moderate contraction.
- Oil and gas and real estate reported strong 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
Clara Richardson
Analyst, Research
Greater Houston Partnership
crichardson@houston.org
Colin Baker
Manager of Economic Research
Greater Houston Partnership
bakerc@houston.org
