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The Greater Houston Partnership has issued the following press release:
Houston’s recovery continued to strengthen in September, according to the most recent Houston Purchasing Managers Index (PMI). The September ’21 PMI of 59.5, up from 57.5 in August, marks the 14th consecutive month above 50. Readings above 45 correlate with expansion of the service side of Houston’s economy, below 45 a contraction, while readings above 50 signal expansion in Houston’s goods producing sectors, below 50 a contraction.
The index is composed of eight underlying indicators: sales or new orders, production, employment, purchases, prices paid for major purchases, lead times from sellers, purchased materials inventory (raw materials and supplies), and finished goods inventories. In September, the three sub-indexes that strongly correlate with growth—sales/new orders, employment, and lead times—all pointed to expansion.
On an industry specific basis, oil and gas, construction, manufacturing, trade and transportation, healthcare, new and existing home sales, professional services, and leisure and hospitality reported strong expansion. The three-month forecast continues to predict expansion, primarily due to the strength of the sales/new orders, production, and prices paid indices.
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 on the index, click here.
Patrick Jankowski, CERP
Senior Vice President, Research
713-844-3616
pjankowski@houston.org