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Slowing Growth In Manufacturing May Drag Down Houston’s Economic Expansion

The next few months will show by how much.

Manufacturing is a strong indicator for the overall Houston economic, though not as much as in the past.

Houston’s economy has been expanding for more than two years, according to the Purchasing Managers Index, which measures economic activity across different sectors.

It forecasts manufacturing activity will contract in the months ahead.

Manufacturing is a strong indicator for the overall economy but not as much as in the past, said Ross Harvison. He works for the Institute for Supply Management, which created the index.

“So we really have to see a strong manufacturing slowdown in connection with a service sector slowdown to see an overall economic slowdown in the Houston economy,” Harvison said.

Lately, professional services have also seen a weakening of activity.

Harvison is concerned that if this continues, the broader Houston economy will be negatively affected in 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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Florian Martin

Business Reporter

Florian Martin is currently the News 88.7 business reporter. Florian’s stories can frequently be heard on other public radio stations throughout Texas and on NPR nationwide. Some of them have earned him awards from Texas AP Broadcasters and the Houston Press Club. Florian is a native of Germany. His studies...

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