Houston Update Purchasing Managers Index (PMI)

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. 

Original source can be found here.