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Economic growth in the Houston area expanded at a steady pace in January, according to the most recent Houston Purchasing Managers Index (PMI) prepared by the Institute for Supply Management-Houston. The overall PMI, which measures broad economic activity according to the responses of surveyed supply chain executives, was 52.1 in January ‘25, identical to its value in December ‘24, and above the neutral point of 45 indicating growth. Manufacturing saw strong growth with a PMI of 56.5, while non-manufacturing grew moderately with a PMI of 51.3.

Two of the three PMI indicators that most strongly correlate with Houston’s economic growth grew while one contracted:
•    Sales/new orders at 57.3 slid moderately while remaining above the breakeven point of 50 indicating growth.
•    Lead times improved to 53.2, indicating growth for the first time in three months.
•    Employment slid to 48.5, indicating moderate contraction.

The index measuring inventories of finished goods, where values above 50 correlate with economic contraction, rose to 51.4.

On an industry-specific basis:
•    Construction, retail trade, durable goods manufacturing, non-durable goods manufacturing, and transportation and warehousing reported strong expansion. 
•    Professional and business services reported neutral growth.
•    Oil and gas reported contraction. 
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

Colin Baker
Manager of Economic Research
Greater Houston Partnership
bakerc@houston.org

Leta Wauson
Director, Research
Greater Houston Partnership
lwauson@houston.org