Monthly update: Purchasing Managers Index November '21, latest data

Greater Houston Partnership has issued the following press release: 

Overall economic activity expanded at a strong pace again in November, according to the most recent Houston Purchasing Managers Index (PMI). The November ’21 PMI registered 60.3, a slight dip from 61.0 in October due to moderately slower expansion in the service sector.

• Readings above 45 correlate with expansion of the service side of Houston’s economy, below 45 a contraction. November marks the 18th consecutive month with the Houston PMI above 45. (See chart below.)
• Readings above 50 signal expansion in Houston’s goods producing sectors, below 50 a contraction. November marks the 16th consecutive month above 50.

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. Moderately lower sales/new orders, employment, and lead times indices, partially offset by a lower finished goods inventory index, caused the reduction in the PMI. The first three indicators have the strongest direct correlation with the economic activity in Houston.

On an industry specific basis, oil and gas, construction, manufacturing, wholesale trade, transportation, healthcare, real-estate, professional and management services, and leisure and hospitality all reported strong expansion. The PMI continues to predict expansion over the next three months, 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.