Manufacturing in Houston area grows for 13th straight month

Workers assemble air conditioning units in the new Daikin facility Wednesday, May 10, 2017, in Waller before it officially opens on May 24. It is the world's largest building of this particular construction type (called "tilt-wall"). It's four million square feet, about the size of 40 city blocks, or 91 acres. The plant bring several thousand manufacturing jobs to Houston when it opens. They make air conditioning, heating and ventilation units. ( Steve Gonzales / Houston Chronicle ) less Workers assemble air conditioning units in the new Daikin facility Wednesday, May 10, 2017, in Waller before it officially opens on May 24. It is the world's largest building of this particular construction ... more Photo: Steve Gonzales, Staff Photographer / Houston Chronicle Photo: Steve Gonzales, Staff Photographer / Houston Chronicle Image 1 of / 1 Caption Close Manufacturing in Houston area grows for 13th straight month 1 / 1 Back to Gallery

Manufacturing activity in the Houston region expanded in October, marking the 13th consecutive month the key economic indicator has risen, according to a report released Monday by the Institute for Supply Management.

Overall economic activity in the region has expanded for 27 months, with near-term forecasts favoring continued growth.

Some economists believe the area's economic expansion could soon slow as a historically low unemployment rate of 4.1 percent is making it hard for employers to find qualified workers.

RELATED: Solid growth ahead for Houston economy, forecast says

Data from the monthly report is based on surveys sent to local companies to come up with a Purchasing Managers Index, or PMI. The figure captures activities such as new orders, deliveries, inventory and employment levels. A PMI above 50 shows economic expansion, while a PMI below 50 shows contraction.

The October Houston PMI registered 55.0, down 2.1 points from 57.1 the previous month but still in a healthy range that shows growth.

Health care, manufacturing, midstream oil and gas operations, and engineering and construction companies continue to report expansion, the report said. All other sectors were near neutral.

The institute forecasts healthy growth in the oil and gas sector over the next three months but expects nondurable goods manufacturing to weaken.

The Institute for Supply Management has published the report monthly since 1995.