The Houston Purchasing Managers Index (PMI), a short-term leading indicator for regional production, registered 56.1 in February, up marginally from 56.0 in January. Readings above 45 signal overall economic expansion in Houston over the next three to four months. Readings above 50 signal expansion in the manufacturing sector. The region’s PMI has signaled expansion in overall economic activity for 31 consecutive months and manufacturing activity for 18 consecutive months.
The Houston PMI is derived from monthly surveys of local purchasing managers representing various industries. In February, health care, professional services, construction and durable goods manufacturing reported expansion. Oil and Gas showed signs of contraction along with no-durable goods manufacturing.
Patrick Jankowski, CERP
Senior Vice President, Research
Roel Gabe Martinez, GISP, CERP