Potential Houston Economic Storm

Houston Economy Expands Again in February

(Houston, Texas) – Area supply chain executives reported that the Houston economy expanded at a higher pace in February. Manufacturing activity showed minimal contraction again this month, while nonmanufacturing reported a modestly higher expansion rate. The Houston Purchasing Managers Index fell 3.0 points to 50.8. Two of the three underlying indicators that have the strongest correlation with the Houston economy, sales/new orders and lead times, are now pointing to possible weak contraction while the third, employment, continues to indicate potential expansion. The sales/new orders index fell 2.3 points to 47.2. The employment index fell 3.4 points to 55.5. The lead times index fell 4.1 points to 48.7. The Finished goods inventory index, the underlying indicator that has the strongest inverse correlation with economic activity, rose 1.4 points to 53.0, giving a modestly higher indication of contraction. The Houston Manufacturing PMI fell 1.7 points to 48.6, giving a modest contraction signal. The non-manufacturing PMI fell 3.3 points to 51.2, showing a slower expansion rate for the industries in this sector. On an industry specific basis, professional and management services, construction, oil & gas, and health care reported continued expansion. Manufacturing, leisure and hospitality, real estate, and trade, transportation & warehousing reported near neutral. No sector reported significant contraction. The Institute for Supply Management – Houston has published the Houston Purchasing Managers Index monthly since January 1995 as a service to its members and the greater Houston business community. Click here to see the online version and here to see the PDF version of the full report.
Posted in Houston Business Reports.

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