Economic activity in Houston continued to expand in September according to the most recent Houston Supply Chain Managers Index (SCMI) prepared by the Institute for Supply Management-Houston. The headline SCMI eased to 53.3 from 53.5 in August, signaling continued growth at a slightly slower pace. Non-manufacturing remained a key source of strength, with an SCMI of 53.9 marking an eighth consecutive month of growth. Manufacturing was nearly flat, with its SCMI declining to 49.8 from 51.7 in August, indicating a marginal return to contraction.

All three SCMI components most closely linked to Houston’s growth signaled growth:
• Sales/New Orders registered 55.0, indicating growth that accelerated from August’s 52.2.
• Employment moderated slightly to 53.0 from 53.4 a month earlier.
• Lead Times saw slower growth at 53.0, declining from 57.1 a month earlier.

On an industry-specific basis:
• Construction, professional services, health care, non-durable goods manufacturing, trade, transportation and warehousing, and oil and gas reported modest to strong expansion.
• Real estate reported near-neutral activity.
• Durable goods manufacturing continues to contract, although the sector reported significantly less weakness than in August.

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