Houston’s economy continued to expand in April, though at a slightly slower pace, according to the latest Houston Purchasing Managers Index (PMI) from the Institute for Supply Management–Houston. The headline PMI, which gauges overall economic activity based on a survey of supply chain executives, registered 51.4, down modestly from 52.3 in March. Even so, the reading remained well above the 45 break-even value, extending the region’s expansion streak to 71 consecutive months. Both manufacturing and non-manufacturing continued to grow, with PMIs of 52.2 and 51.3, respectively.

All three PMI components most closely linked to Houston’s growth signaled expansion in April, albeit at a slower pace:
• Sales/New Orders stayed positive at 53.5, easing slightly from 54.0 in March.
• Employment held just above neutral at 50.7, edging down from 51.0 in March.
• Lead Times also signaled expansion at 51.0, though the index retreated from 54.0 a month earlier.

On an industry-specific basis:
• Construction, professional services, nondurable goods manufacturing, and trade, transportation, and warehousing reported strong expansion.
• Oil and gas extraction and durable goods manufacturing reported 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