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The Greater Houston Partnership has issued the following press release:
Overall economic activity expanded at a slower pace in December, according to the most recent Houston Purchasing Managers Index (PMI). The December ’21 PMI registered 57.8, down from 60.3 in November and 61.0 in October. A PMI above 45 correlates with expansion of the services side of Houston’s economy, below 45 a contraction. Readings above 50 signal expansion in Houston’s goods-producing sectors, below 50 a contraction. December marks the 19th consecutive month with the Houston PMI above 45 and 17th month above 50.
On an industry-specific basis, health care, professional and management services, oil and gas, manufacturing, construction, real estate, and trade and transportation reported moderate to strong expansion. Leisure and hospitality reported contraction for the first time since early in the pandemic. The three-month forecast continues to predict expansion, primarily due to the strength of the sales/new orders, production, and prices paid indices.
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.
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.