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Houston’s economy expanded at a slightly faster pace in May than April, according to the most recent Houston Purchasing Managers Index (PMI) prepared by the Institute for Supply Management-Houston. Manufacturing contracted somewhat faster, but non-manufacturing growth accelerated offsetting the decline.
The overall PMI rose 0.8 points from 50.3 in April to 51.1 in May. Readings above 50 indicate overall expansion in Houston’s economy, below 50, contraction. The manufacturing PMI slipped from 49.2 to 46.6. The non-manufacturing PMI rose from 50.5 to 52.0.
The three indicators with the strongest positive correlation with economic expansion registered above 50 in May. However, they were marginally above 50 suggesting weaker growth ahead.
On an industry specific basis, construction and professional and business services reported modest to strong expansion. Oil and gas along with durable goods manufacturing continue to report significant weakness. All other sectors came in near neutral.
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, click here.
Prepared by Greater Houston Partnership Research
Patrick Jankowski, CERP
Chief Economist
Senior Vice President, Research
pjankowski@dowtek.net
Leta Wauson
Research Director
Greater Houston Partnership
lwauson@dowtek.net
Houston's PMI registered 51.1 in May '24
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