Houston Economic Update - April 2013
Upcoming SlideShare
Loading in...5
×
 

Houston Economic Update - April 2013

on

  • 1,229 views

 

Statistics

Views

Total Views
1,229
Views on SlideShare
769
Embed Views
460

Actions

Likes
0
Downloads
1
Comments
0

3 Embeds 460

http://www.coydavidson.com 456
http://abtasty.com 3
http://www.ipv6.coydavidson.com 1

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Houston Economic Update - April 2013 Houston Economic Update - April 2013 Document Transcript

  • A publication of the Greater Houston Partnership Volume 22, Number 4 • April 2013 Catch Us If You Can – The Houston 20 MOST POPULOUS U.S. METROS metro area continues to set the pace for Ranked By Percent Change in Employment February ’12 - February ’13 job growth in the nation, recording a 4.5 percent increase in employment from Metro Area Jobs Added % Change Houston 118,700 4.5 February ’12 to February ’13, according Dallas-Fort Worth 108,900 3.7 to data released by the U.S. Bureau of San Francisco 59,400 3.1 Labor Statistics (BLS). That’s three Tampa 33,200 2.9 times the pace of job growth for the na- Seattle 46,400 2.8 Atlanta 57,800 2.5 tion as a whole and faster than any other San Diego 31,400 2.5 major metro. Los Angeles 124,600 2.4 Riverside 27,500 2.4 BLS reports employment data for 372 Phoenix 41,500 2.4 metro areas. Only 10 other metros re- Minneapolis 41,100 2.4 ported faster growth than Houston, but Baltimore 30,300 2.3 Boston 41,600 1.7 they were all significantly smaller. Pro- Miami 36,600 1.6 vo, UT, the most populous of the 10, New York 110,000 1.3 reported job growth of 5.4 percent, Chicago 55,400 1.3 which translates to 10,100 jobs over the Washington 39,700 1.3 Philadelphia 26,300 1.0 past year, or about as many as Houston Detroit 10,500 0.6 created in an average month. St. Louis 6,900 0.5 Houston added 118,700 net jobs during Source: U.S. Bureau of Labor Statistics the 12 months ending February ’12. Only the Los Angeles metro, with twice the popula- tion of Houston, created more. Los Angeles, however, remains 325,000 jobs below its pre-recession peak. At its current pace, Los Angeles won’t recoup all the jobs it lost in the recession until the fall of ’15. Houston returned to its previous peak in the fall of ’11. Since January ’10, the month the recession ended here, Houston has created 276,900 new jobs, 180.9 percent of what the region lost. At the current pace of growth, Houston area employment will top 2.8 million before the end of the year. In February, Houston’s unemployment rate (not seasonally adjusted) stood at 6.3 percent, nearly two points below the U.S. unadjusted rate of 8.1 percent. Houston’s unemploy- ment rate historically ticks up in January and February as temporary workers hired for the holiday shopping season are laid off. If history repeats itself and the unemployment rate falls by half a percentage point or more in the coming months, Houston could soon see unemployment below six percent.April 2013 ©2013, Greater Houston Partnership Page 1
  • HOUSTON—THE ECONOMY AT A GLANCE Who’s #1? – The media widely 20 MOST POPULOUS U.S. METROS reported that Dallas-Fort Worth Ranked By Population was the fastest growing metro Population Change Since 7/1/11 Rank Metro As of 7/1/12 Residents Percent last year. They got it wrong. 1 New York 19,831,858 101,928 0.5 Dallas-Fort Worth added more 2 Los Angeles 13,052,921 107,781 0.8 residents but it wasn’t the fastest 3 Chicago 9,522,434 26,715 0.3 growing. Midland, with a popu- 4 Dallas-Fort Worth 6,700,991 131,879 2.0 5 Houston 6,177,035 125,185 2.1 lation gain of 4.6 percent, was 6 Philadelphia 6,018,800 21,326 0.4 the fastest. Dallas-Fort Worth’s 7 Washington 5,860,342 89,129 1.5 population grew 2.0 percent, still 8 Miami 5,762,717 74,809 1.3 a healthy pace but behind Mid- 9 Atlanta 5,457,831 83,153 1.5 10 Boston 4,640,802 37,458 0.8 land—and Houston. The U.S. 11 San Francisco 4,455,560 58,642 1.3 Census Bureau reports that Hou- 12 Riverside 4,350,096 48,255 1.1 ston’s population grew 2.1 per- 13 Phoenix 4,329,534 77,456 1.8 cent last year, the fastest pace 14 Detroit 4,292,060 4,094 0.1 among the nation’s 20 major 15 Seattle 3,552,157 54,338 1.6 16 Minneapolis 3,422,264 33,215 1.0 metro areas—including Dallas- 17 San Diego 3,177,063 38,880 1.2 Fort Worth. 1 18 Tampa 2,842,878 16,440 0.6 19 St. Louis 2,795,794 2,419 0.1 A Common Mistake – Those 20 Baltimore 2,753,149 19,471 0.7 unfamiliar with the data often Source: U.S. Census Bureau assume all Houston’s 125,185 new residents moved here from somewhere else. The increase actually consists of the natural increase in the population, i.e., the excess of resident births over resident deaths, net domestic migration, i.e., the difference between those who move here from elsewhere in the United States and those who move out of Houston, and net international migration, i.e., the difference between those who move here from outside the United States and those who leave Houston for a destination elsewhere. Annual Estimates of the Components of Population Change 7/1/11 – 7/1/12 Population Natural Vital Events Net Migration County Change Increase Births Deaths Total International Domestic Austin -16 86 353 267 -103 33 -136 Brazoria 5,542 2,664 4,728 2,064 2,862 489 2,373 Chambers 719 257 472 215 456 20 436 Fort Bend 19,341 5,361 7,829 2,468 13,837 3,073 10,764 Galveston 5,291 1,619 3,994 2,375 3,637 513 3,124 Harris 80,005 45,321 68,433 23,112 34,647 19,587 15,060 Liberty 626 335 1,061 726 297 40 257 Montgomery 13,343 3,320 6,398 3,078 9,906 1,390 8,516 Waller 334 304 590 286 31 80 -49 Totals 125,185 59,267 93,858 34,591 65,570 25,225 40,345 Source: U.S. Census Bureau1 On a percentage basis, the Dallas-Fort Worth metro ranked 26th among all U.S. metros. Houston was tied at 21st with Daphne, AL (pop. 186,830); Sioux Falls, SD (pop. 237,251); Greeley, CO (pop. 263,691) and Victoria, TX (pop 94,675).April 2013 ©2013, Greater Houston Partnership Page 2
  • HOUSTON—THE ECONOMY AT A GLANCE A New Name For Houston – The ’11 population estimates for Houston feature a new name for the Houston metro. As of February 28, the region is now known as the Houston- The Woodlands-Sugar Land Metropolitan Statistical Area. From this point on, the me- tro’s old name—Houston-Sugar Land-Baytown Metropolitan Statistical Area—will only be used in an historic context. 2 The Office of Man- Counties in Houston-The Woodlands-Sugar Land Metro Area Ranked by Share of Metro Population agement and Budget Change Since Population Share of (OMB) delineated County 7/1/11 Metro Pop. the Houston metro ’11 ’12 # % Harris 4,173,695 4,253,700 80,005 1.9% 68.9% area to consist of Fort Bend 607,952 627,293 19,341 3.2% 10.2% nine counties, not 10, Montgomery 471,704 485,047 13,343 2.8% 7.9% dropping San Jacin- Brazoria 319,227 324,769 5,542 1.7% 5.3% 3 Galveston 295,193 300,484 5,291 1.8% 4.9% to. San Jacinto Liberty 75,945 76,571 626 0.8% 1.2% represented 0.4 per- Waller 44,023 44,357 334 0.8% 0.7% cent of the region’s Chambers 35,477 36,196 719 2.0% 0.6% population, so drop- Austin 28,634 28,618 -16 -0.1% 0.5% ping the county from Totals 6,051,850 6,177,035 125,185 2.1% 100.0% the official metro de- Source: U.S. Census Bureau lineation won’t impact Houston’s population rank, but it does complicate matters for ana- lysts and economists who maintain long-running data series on the region’s economy. Job News Keeps Getting Better – Houston performed better last year than first thought, creating 105,700 net new jobs, or 21,200 more than BLS previously reported. The up- ward bump in employment came from the annual benchmark revisions, a review process that starts each fall and ends with the release of revised employment data in March. The initial reports are based on a survey sample of area employers. The revised job counts are based on data available from unemployment insurance accounts. BLS revised employ- ment data from April ’11 through December ’12. The revisions show nine sectors per- formed better than originally reported and three performed worse. The upward revision for architectural and engineering services was expected, given the performance of the oil industry and the spate of recent chemical plant announcements.2 The Office of Management and Budget (OMB) develops the standards for delineating and naming metros that Census then ap- plies to the data. The naming guidelines call for a metro name to include the largest incorporated place in the region, any city or Census Designated Place (an unincorporated area that functions much like a city) with a population of 250,000 or more or in which 100,000 or more persons work, and any city or place with more than 50,000 residents but less than 250,000 where the number of workers in the place exceeds the number of residents.3 OMB defines metropolitan statistical areas as having “a large population nucleus and adjacent communities that have a high de- gree of integration with that nucleus.” OMB applies a simple test to determine that degree of integration and whether a county should be included in an MSA. At least 25 percent of the workers living in an outlying county must work in the central county or counties of a metro area, or at least 25 percent of the jobs in an outlying county must be held by workers who live in the central county or counties of a metro area. Evidently, San Jacinto County no longer meets either of those criteria, so OMB decided to exclude it from the officially delineated metro area.April 2013 ©2013, Greater Houston Partnership Page 3 View slide
  • HOUSTON—THE ECONOMY AT A GLANCE Manufacturing continues to thrive in Houston, one of the few metros that can make that claim. Significant Revisions to Employment by Sector Mining and logging, in Houston pri- Upward Revisions Jobs marily oil and gas, performed even Architectural and Engineering +8,000 better than first reported. The big Government +7,700 surprise was the government sector. Manufacturing +5,300 The bulk of the revisions occurred in Mining and Logging +3,800 local government, primarily in public Leisure and Hospitality +2,600 Financial Activities +2,500 education, as school districts found Employment Services +2,500 ways to hire educators and support Wholesale Trade +1,700 staff to teach the region’s burgeoning Real Estate +1,500 school-age population. Downward Revisions Jobs Construction -8,300 The downward revisions for con- Retail Trade -5,400 struction and health care are cause Health Care and Social Assistance -6,000 for some concern. Given the demand Source: U.S. Bureau of Labor Statistics for housing and the chemical plant and office building construction underway, one would have expected construction em- ployment to have been revised upward, not downward. Recent weeks have seen several reports about construction workers classified as “independent contractors,” keeping them off the formal payroll and allowing companies to avoid paying benefits or running immi- gration background checks. That practice may explain why construction activity remains strong but the job numbers remain weak. Regarding the health care revisions, BLS prob- ably didn’t account for local providers taking early steps to control staff levels in antici- pation of changes that will take place Revisions to Houston Metro Area this year under the Affordable Care Net Change in Payroll Employment Year Original Esti- Revised Re- Net Change Act. mate port ’10 48,800 47,400 -1,400 BLS also revised Houston’s overall ’11 76,800 81,200 +4,400 employment growth in ’10 downward ’12 84,500 105,700 +21,200 by 1,400 jobs and in ’11 upward by SOURCE: U.S. Bureau of Labor Statistics 4,400. Art is Big Business – Nonprofit arts and culture contributed $977.7 million to the Hou- ston metro economy in ’11, according to Arts & Economic Prosperity IV, a study con- ducted by the Houston Arts Alliance and Americans for the Arts. The study analyzed the expenditures of 171 Houston-area nonprofit arts and culture organizations and estimated the event-related spending habits of 16.2 million arts and culture patrons. Houston-area nonprofit arts and culture organizations spent $414.6 million on employee salaries, vendor services, supplies and various assets and items within the community. Event-related spending by audiences on art and cultural events pumped an additional $563.1 million into the local economy.April 2013 ©2013, Greater Houston Partnership Page 4 View slide
  • HOUSTON—THE ECONOMY AT A GLANCE Economic Impact of Houston’s Nonprofit Arts and Culture Organizations and their Audiences 171 arts and $414.6 million culture expenditures $977.7 million organizations $702.9 million Total 29,118 jobs Household Income 16.2 million $563.1 million Expenditures attendees expenditures Source: Houston Arts Alliance, Americans for the Arts, Arts & Economic Prosperity IV The report estimated that a typical arts patron spends an average of $34.81 in the com- munity per event beyond the cost of admission. Average audience expenditures were based on data collected from 1,284 event attendees on their spending in areas such as res- taurants, retail stores, and transportation. The typical Houston arts and culture patron spent 40 percent more than the U.S. patron, who spent an average of $24.60 per event. Of the 16.2 million arts and culture patrons, 2.2 million were from outside the region and spent $55.81 per person, or 60.3 percent more than residents. The report states that com- munities that draw cultural tourists experience an additional boost of economic activity. Cultural tourists typically spend more in the categories of lodging, meals, and transporta- tion. Arts & Economic Prosperity IV also asserts that “a vibrant arts community not only keeps residents and their discretionary spending close to home, it also attracts visitors who spend money and help local businesses thrive.” Of all nonresident survey respondents, 52.8 percent reported that they would have traveled to a different community in order to attend a similar cultural experience; 43.2 percent of Houstonians responded the same. For the full report, please visit the Houston Arts Alliance website or click here. Aviation Update – The Houston Airport System (HAS) handled 3.60 million passen- gers in February ’13, a 1.7 percent decrease from the 3.66 million handled in February ’12. Domestic traffic dropped 1.6 percent from 3.04 million passengers in February ’12 to 2.99 million passengers in February ’13. International traffic fell 2.0 percent from 625,197 in February ’12 to 612,693 in February ’13. While Hobby Airport continues to experience passenger growth, its volume is not enough to offset the losses that occur at Bush Intercontinental Airport (IAH). The last time annual passenger traffic increased at IAH was in ’10. Passenger traffic declined 0.72 percent from ’10 to ’11 and 0.74 percent from ’11 to ’12. Although these are small declines, they run counter to the trends Houston has experienced in areas such as employment, GDP, and foreign trade.April 2013 ©2013, Greater Houston Partnership Page 5
  • HOUSTON—THE ECONOMY AT A GLANCE The April 1 issue of Airline Weekly addresses the puzzling traffic decline despite Houston’s strong economy and diverse population. The article states that the “drop at Bush IAH is more likely a United story than a Houston story. During the past year, United has axed 11 destinations from there.” The article noted that United controls 82 percent of the capacity out of IAH, so when the airline cuts routes, it impacts IAH’s overall traffic count. Airline Weekly noted that IAH continues to experience growth from new entrants such as Turkish Airlines and Air China. Demand for the new Istanbul route has been so strong that Turkish Airlines added two more weekly flights to its originally sche- duled four weekly flights before even beginning service at IAH. Existing internation- al carriers such as Emirates, Qatar Airways, Singapore Airlines, and Lufthansa con- tinue to grow their business at IAH. Houston remains a desirable market for these air- lines, given the region’s strong demand for premium products such as business-class and first-class seats, and traffic from its diverse and mobile population visiting friends and relatives. Patrick Jankowski and Jenny Philip contributed to this issue of Houston: The Economy at a Glance STAY UP TO DATE!Are you a GHP Member? If so, log in to your account here and access archived issues of Glanceavailable only to members. You can also sign-up RSS feeds to receive Houston’s latest economicdata throughout the month.If you are a non-member and would like to receive this electronic publication on the first working dayof each month, please email your request for Economy at a Glance to dmorrow@houston.org.Include your name, title and phone number and your company’s name and address. For informationabout joining the Greater Houston Partnership and gaining access to this powerful resource, callMember Services at 713-844-3683.The Key Economic Indicators table is updated whenever any data change — typically, 11 or sotimes per month. If you would like to receive these updates by e-mail, usually accompanied bycommentary, please email your request for Key Economic Indicators to dmorrow@houston.orgwith the same identifying information.You may request Glance and Indicators in the same email.April 2013 ©2013, Greater Houston Partnership Page 6
  • HOUSTON—THE ECONOMY AT A GLANCEHouston Economic Indicators YEAR-TO-DATE TOTAL or A Service of the Greater Houston Partnership MONTHLY DATA YTD AVERAGE* Most Year % Most Year % Month Recent Earlier Change Recent Earlier ChangeENERGY U.S. Active Rotary Rigs Mar 13 1,756 1,979 -11.3 1,758 * 1,990 * -11.7 Spot Crude Oil Price ($/bbl, West Texas Intermediate) Mar 13 93.37 106.11 -12.0 94.35 * 103.00 * -8.4 Spot Natural Gas ($/MMBtu, Henry Hub) Mar 13 3.80 2.13 78.4 3.49 * 2.36 * 47.9UTILITIES AND PRODUCTION Houston Purchasing Managers Index Feb 13 64.3 59.6 7.9 60.0 * 59.7 * 0.5 Nonresidential Electric Current Sales (Mwh, CNP Service Area) Feb 13 3,949,675 3,860,890 2.3 7,881,158 7,875,023 0.1CONSTRUCTION Total Building Contracts ($, Houston MSA) Feb 13 794,267,000 878,535,000 -9.6 1,572,787,000 1,686,607,000 -6.7 Nonresidential Feb 13 209,964,000 383,999,000 -45.3 437,272,000 726,590,000 -39.8 Residential Feb 13 584,303,000 494,536,000 18.2 1,135,515,000 960,017,000 18.3 Building Permits ($, City of Houston) Feb 13 580,120,148 394,105,210 47.2 1,059,927,733 750,333,754 41.3 Nonresidential Feb 13 451,014,145 257,732,987 75.0 794,147,487 525,976,800 51.0 New Nonresidential Feb 13 276,494,719 84,117,845 228.7 448,480,191 170,136,276 163.6 Nonresidential Additions/Alterations/Conversions Feb 13 174,519,426 173,615,142 0.5 345,667,296 355,840,524 -2.9 Residential Feb 13 129,106,003 136,372,223 -5.3 265,780,246 224,356,954 18.5 New Residential Feb 13 114,701,131 120,545,595 -4.8 234,268,925 192,923,902 21.4 Residential Additions/Alterations/Conversions Feb 13 14,404,872 15,826,628 -9.0 31,511,321 31,433,052 0.2 Multiple Listing Service (MLS) Activity Closings Feb 13 5,324 4,544 17.2 10,004 8,170 22.4 Median Sales Price - SF Detached Feb 13 161,700 149,900 7.9 155,800 * 144,900 * 7.5 Active Listings Feb 13 33,361 42,199 -20.9 33,447 * 42,133 * -20.6EMPLOYMENT (Houston-Sugar Land-Baytown MSA) Nonfarm Payroll Employment Feb 13 2,752,100 2,633,400 4.5 2,738,000 * 2,621,450 * 4.4 Goods Producing (Natural Resources/Mining/Const/Mfg) Feb 13 540,100 506,300 6.7 535,250 0 503,200 * 6.4 Service Providing Feb 13 2,212,000 2,127,100 4.0 2,202,750 0 2,118,250 * 4.0 Unemployment Rate (%) - Not Seasonally Adjusted Houston-Sugar Land-Baytown MSA Feb 13 6.3 7.3 6.5 * 7.4 * Texas Feb 13 6.5 7.2 6.7 * 7.4 * U.S. Feb 13 8.1 8.7 8.3 * 8.8 *FOREIGN TRADE (Houston-Galveston Customs District) Port of Houston Authority Shipments (Short Tons) Feb 13 3,460,479 3,390,641 2.1 6,912,712 6,965,394 -0.8 Air Passengers (Houston Airport System) Feb 13 3,603,181 3,665,434 -1.7 7,505,559 7,536,624 -0.4 Domestic Passengers Feb 13 2,990,488 3,040,237 -1.6 6,161,272 6,171,047 -0.2 International Passengers Feb 13 612,693 625,197 -2.0 1,344,287 1,365,577 -1.6 Landings and Takeoffs Feb 13 60,850 66,108 -8.0 125,096 133,359 -6.2 Air Freight (metric tons) Feb 13 31,840 32,292 -1.4 65,698 65,542 0.2 Enplaned Feb 13 16,234 16,382 -0.9 33,640 33,926 -0.8 Deplaned Feb 13 15,606 15,910 -1.9 32,058 31,616 1.4CONSUMERS New Car and Truck Sales (Units, Houston MSA) Feb 13 26,635 24,774 7.5 53,611 52,582 2.0 Cars Feb 13 11,528 11,076 4.1 23,084 22,620 2.1 Trucks, SUVs and Commercials Feb 13 15,107 13,698 10.3 30,527 29,962 1.9 Total Retail Sales ($000,000, Houston MSA, NAICS Basis) 3Q12 26,987 23,661 14.1 76,829 70,081 9.6 Consumer Price Index for All Urban Consumers (82-84=100) Houston-Galveston-Brazoria CMSA Feb 13 205.716 204.291 0.7 204.906 * 203.338 * 0.8 United States Feb 13 232.166 227.663 2.0 231.223 * 227.164 * 1.8 Hotel Performance (Harris County) Occupancy (%) 4Q12 62.3 58.3 65.4 * 59.8 * Average Room Rate ($) 4Q12 94.08 89.38 5.3 94.23 * 90.57 * 4.0 Revenue Per Available Room ($) 4Q12 58.65 52.10 12.6 61.66 * 54.16 * 13.8POSTINGS AND FORECLOSURES Postings (Harris County) Feb 13 2,145 3,547 -39.5 3,759 6,686 -43.8 Foreclosures (Harris County) Feb 13 618 1,065 -42.0 1,029 2,004 -48.7April 2013 ©2013, Greater Houston Partnership Page 7
  • HOUSTON—THE ECONOMY AT A GLANCESourcesRig Count Baker Hughes Incorporated Port Shipments Port of Houston AuthoritySpot WTI, Spot Natural Gas U.S. Energy Information Admin. Aviation Aviation Department, City ofHouston Purchasing Managers National Association of HoustonIndex Purchasing Management – Car and Truck Sales TexAuto Facts Report, Houston, Inc. InfoNation, Inc., Sugar Land TXElectricity CenterPoint Energy Retail Sales Texas Comptroller’s OfficeBuilding Construction Contracts McGraw-Hill Construction Consumer Price Index U.S. Bureau of Labor StatisticsCity of Houston Building Permits Building Permit Department, City Hotels PKF Consulting/Hospitality Asset of Houston Advisors InternationalMLS Data Houston Association of Realtors Postings, Foreclosures Foreclosure Information & ListingEmployment, Unemployment Texas Workforce Commission ServiceApril 2013 ©2013, Greater Houston Partnership Page 8
  • HOUSTON—THE ECONOMY AT A GLANCEHOUSTON MSA NONFARM PAYROLL EMPLOYMENT (000) Change from % Change from Feb 13 Jan 13 Feb 12 Jan 13 Feb 12 Jan 13 Feb 12Total Nonfarm Payroll Jobs 2,752.1 2,723.9 2,633.4 28.2 118.7 1.0 4.5Total Private 2,375.8 2,356.9 2,265.2 18.9 110.6 0.8 4.9Goods Producing 540.1 530.4 506.3 9.7 33.8 1.8 6.7Service Providing 2,212.0 2,193.5 2,127.1 18.5 84.9 0.8 4.0 Private Service Providing 1,835.7 1,826.5 1,758.9 9.2 76.8 0.5 4.4 Mining and Logging 104.0 104.3 96.2 -0.3 7.8 -0.3 8.1 Oil & Gas Extraction 55.8 55.9 52.3 -0.1 3.5 -0.2 6.7 Support Activities for Mining 47.1 47.2 42.8 -0.1 4.3 -0.2 10.0 Construction 186.3 178.6 173.1 7.7 13.2 4.3 7.6 Manufacturing 249.8 247.5 237.0 2.3 12.8 0.9 5.4 Durable Goods Manufacturing 170.1 168.0 158.8 2.1 11.3 1.3 7.1 Nondurable Goods Manufacturing 79.7 79.5 78.2 0.2 1.5 0.3 1.9 Wholesale Trade 148.7 147.9 141.2 0.8 7.5 0.5 5.3 Retail Trade 279.9 283.2 268.0 -3.3 11.9 -1.2 4.4 Transportation, Warehousing and Utilities 130.9 131.1 125.9 -0.2 5.0 -0.2 4.0 Utilities 16.4 16.2 16.6 0.2 -0.2 1.2 -1.2 Air Transportation 22.0 22.1 22.3 -0.1 -0.3 -0.5 -1.3 Truck Transportation 24.3 24.1 22.8 0.2 1.5 0.8 6.6 Pipeline Transportation 10.4 10.4 10.5 0.0 -0.1 0.0 -1.0 Information 31.8 31.8 31.2 0.0 0.6 0.0 1.9 Telecommunications 15.3 15.1 15.4 0.2 -0.1 1.3 -0.6 Finance & Insurance 89.0 90.1 89.0 -1.1 0.0 -1.2 0.0 Real Estate & Rental and Leasing 50.2 49.8 49.0 0.4 1.2 0.8 2.4 Professional & Business Services 409.9 401.9 394.9 8.0 15.0 2.0 3.8 Professional, Scientific & Technical Services 198.0 193.8 191.5 4.2 6.5 2.2 3.4 Legal Services 23.8 23.8 23.2 0.0 0.6 0.0 2.6 Accounting, Tax Preparation, Bookkeeping 22.1 21.3 22.7 0.8 -0.6 3.8 -2.6 Architectural, Engineering & Related Services 68.7 66.8 63.1 1.9 5.6 2.8 8.9 Computer Systems Design & Related Services 27.1 26.8 26.0 0.3 1.1 1.1 4.2 Admin & Support/Waste Mgt & Remediation 188.8 185.0 180.9 3.8 7.9 2.1 4.4 Administrative & Support Services 178.9 175.1 172.1 3.8 6.8 2.2 4.0 Employment Services 73.0 70.4 67.2 2.6 5.8 3.7 8.6 Educational Services 47.3 46.5 45.4 0.8 1.9 1.7 4.2 Health Care & Social Assistance 291.2 289.8 275.7 1.4 15.5 0.5 5.6 Arts, Entertainment & Recreation 26.3 25.6 25.5 0.7 0.8 2.7 3.1 Accommodation & Food Services 234.8 232.6 220.0 2.2 14.8 0.9 6.7 Other Services 95.7 96.2 93.1 -0.5 2.6 -0.5 2.8 Government 376.3 367.0 368.2 9.3 8.1 2.5 2.2 Federal Government 27.6 27.2 27.3 0.4 0.3 1.5 1.1 State Government 72.3 71.4 71.6 0.9 0.7 1.3 1.0 State Government Educational Services 39.3 38.3 39.1 1.0 0.2 2.6 0.5 Local Government 276.4 268.4 269.3 8.0 7.1 3.0 2.6 Local Government Educational Services 194.9 186.7 189.2 8.2 5.7 4.4 3.0SOURCE: Texas Workforce CommissionApril 2013 ©2013, Greater Houston Partnership Page 9
  • HOUSTON—THE ECONOMY AT A GLANCE PURCHASING MANAGERS INDEX HOUSTON & U.S. 2003-2013 70 65 60 55 50 45 40 35 30 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 HOUSTON U.S. Source: National Association for Purchasing Management - Houston, Inc. HOUSTON MSA EMPLOYMENT 2003-2013 2,800 160 2,750 140 2,700 120 2,650 100 NONFARM PAYROLL EMPLOYMENT (000) 2,600 2,550 80 2,500 60 12-MONTH CHANGE (000) 2,450 40 2,400 20 2,350 0 2,300 2,250 -20 2,200 -40 2,150 -60 2,100 -80 2,050 2,000 -100 1,950 -120 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 12-MONTH CHANGE JOBS Source: Texas Workforce CommissionApril 2013 ©2013, Greater Houston Partnership Page 10
  • HOUSTON—THE ECONOMY AT A GLANCE GOODS-PRODUCING AND SERVICE-PROVIDING EMPLOYMENT HOUSTON MSA 2003-2013 550 2,250 540 2,200 530 2,150 2,100 520 SERVICE-PROVIDING (000) 2,050 GOODS-PRODUCING (000) 510 2,000 500 1,950 490 1,900 480 1,850 470 1,800 460 1,750 450 1,700 440 1,650 430 1,600 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 GOODS-PRODUCING JOBS SERVICE-PROVIDING JOBS Source: Texas Workforce Commission UNEMPLOYMENT RATE HOUSTON & U.S. 2003-2013 11 10 9 8 PERCENT OF LABOR FORCE 7 6 5 4 3 2 1 0 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 HOUSTON U.S. Source: Texas Workforce CommissionApril 2013 ©2013, Greater Houston Partnership Page 11
  • HOUSTON—THE ECONOMY AT A GLANCE SPOT MARKET ENERGY PRICES 2003-2013 140 28 120 24 HENRY HUB NATURAL GAS ($/MMBTU) WEST TEXAS INTERMEDIATE ($/BBL) 100 20 80 16 60 12 40 8 20 4 0 0 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 WTI Monthly WTI 12-MO AVG GAS MONTHLY GAS 12-MO AVG Source: U.S. Energy Information Administration INFLATION: 12-MONTH CHANGE 2003-2013 6% 5% 4% 3% 2% 1% 0% -1% -2% -3% Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 HOUSTON CPI-U U.S. CPI-U Source: U.S. Bureau of Labor StatisticsApril 2013 ©2013, Greater Houston Partnership Page 12