Houston hit a milestone in May, reaching six straight years of economic growth coming out of the COVID-19 pandemic, 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 51.0, down modestly from 51.4 in April but still well above the 45 break-even signaling expansion. The reading marks the 72nd straight month (or sixth straight year) of growth for the region’s economy. Manufacturing activity was flat at 50.0, while non-manufacturing activity expanded with a PMI of 51.2.

All three PMI components most closely linked to Houston’s growth signaled expansion in May, albeit with one growing at a slower pace:
• Sales/New Orders stayed positive at 51.2, easing from 53.5 in April.
• Employment held just above neutral at 50.9, edging up from 50.7 in April.
• Lead Times also signaled expansion at 51.3, modestly increasing from 51.0 a month earlier.

On an industry-specific basis:
• Construction, professional services, nondurable goods manufacturing, and trade, transportation, and warehousing reported strong expansion.
• Health care was neutral.
• 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