Economic activity in Houston continued to expand in August, according to the most recent Houston Supply Chain Managers Index (SCMI) prepared by the Institute for Supply Management-Houston. The index, formerly known as the Purchasing Managers Index (PMI), was recently renamed to better reflect its broad survey base, with no change to the methodology. The headline SCMI eased to 53.5 from 56.6 in July, signaling continued growth at a slightly more measured pace. Manufacturing returned to expansion, rising to an SCMI of 51.7 after two consecutive months of contraction. Non-manufacturing remained a key source of strength, with an SCMI of 53.8 marking a seventh consecutive month of growth.

All three SCMI components most closely linked to Houston’s growth signaled growth:
• Sales/New Orders registered 52.2, indicating growth that slowed from July’s 56.5.
• Employment accelerated modestly, growing to 53.4 from 52.2 over the month.
• Lead Times saw meaningfully faster growth at 57.1, increasing from 53.3 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 strong expansion.
• Oil and gas reported expansion for the second consecutive month.
• Real estate reported near-neutral activity.
• Durable goods manufacturing continues to report contraction, although the sector reported significantly less weakness than in the previous month.

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