Houston’s economy has been expanding for more than two years, according to the Purchasing Managers Index, which measures economic activity in different sectors.
He expects manufacturing activity to contract in the coming months.
Manufacturing is a strong indicator of the overall economy, but not as much as in the past, Ross Harvison said. He works for the Institute for Supply Management, which created the index.
“So we really have to see a strong downturn in manufacturing in relation to a downturn in the service sector to see an overall economic downturn in the Houston economy,” Harvison said.
Recently, professional services have also seen weaker activity.
Harvison fears that if this continues, Houston’s broader economy will be negatively affected over the next three to six months.
Other industries continue to do well, including health care, construction, wholesale trade, and oil and gas.
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