For the latest data, click here. December 10, 2014 The Houston Purchasing Managers Index (PMI), a short-term leading indicator for regional production, registered 54.3 in November, down from 58.5 in October, according to the latest report from the Institute for Supply Management-Houston (ISMHouston). The PMI has a possible range from zero to 100. Readings above the neutral point of 50 indicate likely growth in production over the next three to four months; readings below 50 suggest contraction. With the November reading, the PMI has held at or above 50 for 63 consecutive months. Since GHP began tracking the Houston PMI in ’95, the record for the most consecutive months the PMI held at or above 50 was 70 months starting January ’03 and ending October ’08.1 70 Houston Purchasing Managers Index 50 = Neutral 65 60 55 50 45 40 35 30 '05 '06 '07 '08 '09 '10 Source: Institute for Supply Management-Houston '11 '12 '13 '14 '15 The Houston MSA recorded its first job losses from the Great Recession on January ’09, four months after the PMI fell below 50. 1 The Houston PMI is derived from monthly surveys of local purchasing managers representing various industries such as manufacturing, healthcare, electronics, finance and energy. The index is based on eight components: Sales/New Orders, Production, Employment, Purchases, Prices Paid, Lead Times, Purchased Inventory and Finished Goods Inventory. “The Houston affiliate of the Institute for Supply Management's survey of area supply chain professionals indicates that our economy grew at a slower pace in November,” explains Ross Harvison, ISM-Houston Business Survey Committee Chair. “The Employment Index remained strong. Production, Purchases, Prices and Lead Times continue to point to expansion, but are growing at a slower pace. The Sales/New Orders Index moved from expansion to potential contraction for the first time in more than five years and the Finished Goods Inventory Index stayed on the contraction side. The Purchased Inventory Index move to neutral from potential contraction.” Prepared by Greater Houston Partnership Research Department Patrick Jankowski, CCR Vice President, Research 713-844-3616 pjankowski@houston.org Jenny Philip Manager, Economic Research 713-844-3615 jphilip@houston.org