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Houston Economic Update May 2011
Houston Economic Update May 2011
Houston Economic Update May 2011
Houston Economic Update May 2011
Houston Economic Update May 2011
Houston Economic Update May 2011
Houston Economic Update May 2011
Houston Economic Update May 2011
Houston Economic Update May 2011
Houston Economic Update May 2011
Houston Economic Update May 2011
Houston Economic Update May 2011
Houston Economic Update May 2011
Houston Economic Update May 2011
Houston Economic Update May 2011
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Houston Economic Update May 2011

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  • 1. A publication of the Greater Houston Partnership Volume 20, Number 5 • May 2011 Testing a Strongly Held Belief — There’s a popular conviction that Houston lags the nation going into a recession, leads the nation coming out, and sustains a shorter and shallower period of job loss in between. The nation is now far enough into the recovery to test that belief. So was Houston one of the best metros to ride out the recession or was that just wishful thinking? This article answers that question. The Great Recession began in December ’07 and lasted 18 months, making it the longest recession since World War II. The recovery began in June ’09. The U.S. economy, in fits and starts, has been in recovery for almost two years now. The dates of the recession were set by the National Bureau for Economic Research (NBER), the group that determines peaks and troughs of all U.S. business cycles. NBER examined national trends in gross domestic product, industrial production, income, employment and wholesale and retail trade before setting the dates of the recession. Unfortunately, comparable data are not available on a monthly basis at the metro level. To measure local business cycles, analysts rely on trends in employment, an indicator most people readily grasp. In this analysis, employment is the primary indicator used to measure the onset, depth and end of the recession in each metro area. Onset of the Recession —  The Great Recession began in December’07, but job losses began much earlier in many metro areas. Tampa began losing It was an unfortunate jobs in April ’06. Los Angeles first reported job coincidence that Hurricane losses in April ’07, Miami in September of that Ike and the Great year. Houston, however, did not report job losses Recession arrived in until September ’08, nine months into the Houston the same month. recession. It was an unfortunate coincidence that the recession and Hurricane Ike arrived in Houston the same month. Given the magnitude of the nation’s financial problems, it was inevitable Houston would be impacted. As the chart at the top of the next page shows, Houston was the last of the nation’s 20 largest metro to report job losses1. 1 There are 366 metropolitan statistical areas in the United States. For the purpose of this analysis, only the 20 most populous are reviewed. Detroit ranks among the nation’s 20 most populous metro areas, but because job losses in the Detroit metro date back more than 10 years, it has been excluded from several of the top 20 metro comparisons in this article.May 2011 ©2011, Greater Houston Partnership Page 1
  • 2. HOUSTON—THE ECONOMY AT A GLANCE Depth of the Recession — All things being equal, one would expect the largest metros to suffer the greatest jobs losses. But not all things were equal, and some of the smaller metros sustained job losses disproportionate to their sizes. For instance, Phoenix, the nation’s 12th most populous metro area, lost approximately 246,900 jobs, 90,000 more jobs than Dallas, the nation’s fourth most populous metro. Houston, the nation’s sixth most populous metro, lost 121,200 jobs while Miami, Atlanta, Detroit, Phoenix, Riverside, San Francisco, Seattle and Tampa—all with fewer residents than Houston—lost more jobs than Houston. Total jobs lost during the recession in each metro area are shown in the table at the top of the following page. Job losses are calculated from the month of peak employment in each metro area to the month in which the employment declines stopped in each metro. Calculations are based on seasonally adjusted data.May 2011 ©2011, Greater Houston Partnership Page 2
  • 3. HOUSTON—THE ECONOMY AT A GLANCE Job Losses in the 20 Most Populous U.S. Metro Areas During the Great Recession Jobs Pop. Rank Metro Area Pop. Rank Metro Area Jobs Lost * Lost* 1 New York -389,600 11 Detroit -480,900 2 Los Angeles -519,500 12 Phoenix -246,900 3 Chicago -295,900 13 San Francisco -169,300 4 Dallas -155,900 14 Riverside -172,500 5 Philadelphia -144,700 15 Seattle -141,500 6 Houston -121,200 16 Minneapolis -115,900 7 Miami -245,900 17 San Diego -101,600 8 Atlanta -223,700 18 St. Louis -83,900 9 Washington -95,800 19 Tampa -138,900 10 Boston -104,600 20 Baltimore -70,400 * Based on seasonally adjusted data and calculated from the month of peak employment to the month in which the employment declines stopped in each metro Source: U.S. Bureau of Labor Statistics Another measure of the depth the recession in each metro area is the percentage jobs lost during the downturn—the larger the percentage, the deeper the recession. Among the nation’s largest metros, job losses ranged from 3.2 percent in Washington, D.C. to 13.5 percent in Riverside, with the average being 7.5 percent2. Houston’s job loss was 4.6 percent. Only three metro areas—Washington, D.C., Boston, and New York—lost a smaller share of employment than did Houston. Job losses for Boston, Houston and New York differed by no more than 0.2 percent, an insignificant margin. Washington’s role as the seat of U.S. government mitigated its job losses during the recent recession. Metros that suffered major collapses in their housing markets (e.g. Las Vegas, Los Angeles, Miami, Phoenix, Riverside and Tampa) suffered disproportionately large job losses. A table showing the percent jobs lost in each metro area is shown at the top of the next page.2 Job losses for Detroit excluded from the calculation because they would skew the average.May 2011 ©2011, Greater Houston Partnership Page 3
  • 4. HOUSTON— —THE ECONOMY A A GLA AT ANCE San Francisco Philadelphia Minneapolis Los Angeles Los Angeles Baltimore San Diego New York Riverside Houston St. Louis Phoenix Chicago Atlanta Boston Seattle Tampa Miami Dallas DC ‐3. .2 ‐4.3 ‐4.5 ‐4 4.6 ‐5.1 ‐5.2 ‐5.3 ‐6.1 ‐6.4 ‐7.5 ‐7.7 0 ‐8.0 ‐8.3 ‐9.1 ‐9.7 % Jobs Lost During g Recession n ‐10.2 Top 2 20 U.S. Metro Areas* ‐11.1 ‐1 12.8 ‐13.5 Source: U.S. Bureau of Labo or Statistics * Excludes Detroit * End E of the Recession — The r e recession t that first hi the metro areas at different ti it imes also ended at differ a d rent times. Boston w the f . was first metro to report an uptick in t employmen and it did so in A e nt, d August ’09 just prio to the st of ano 9, or tart other acade emic year. Minn y neapolis began to r b regain job in Sept bs tember ’09 Houston, along with 9. Chicago, D C Dallas and St. Louis, began to p job gains in Jan post nuary ’10. By Januar of ry this t year, a 20 major metro are (includ all eas ding Detroi had beg posting job gains. it) gun g Measured from peak employm M k ment to troough, Hous ston suffer the sho red ortest emp ploy- ment down m nturn—16 months. The avera downt age turn lasted 30 mon d nths, with Los 3 Angeles su A uffering 42 consecu 4 utive mon nths of jo losses. A chart showing the ob t consecutive months of job loss for each o the majo metro ar c o of or reas is show on the next wn page. p3 Detrroit, which suf ffered 128 cons secutive month of job losses has been excl hs s, luded from the calculations b e because it woul skew the ldavera age.May 2 2011 ©2011, G Greater Housto Partnership on Page 4
  • 5. HOUSTON—THE ECONOMY AT A GLANCE Months from Peak Employment to Employment  Uptick, 20 Largest U.S. Metro Areas ‐16 Houston Source: U.S. Bureau of Labor Statistics ‐16 Boston ‐21 DC ‐22 St. Louis Note: Excludes Detroit ‐22 Philadelphia ‐22 Dallas ‐23 Chicago ‐24 Seattle ‐24 New York ‐30 Minneapolis ‐31 Miami ‐32 San Diego ‐33 Baltimore ‐33 Tampa ‐35 Baltimore ‐35 Atlanta ‐37 San Francisco ‐38 Riverside ‐38 Phoenix ‐42 Los Angeles Extent of Recovery — The latest employment report from the U.S. Bureau of Labor Statistics indicates that all of the nation’s 20 largest metro areas (including Detroit) have begun to add jobs. Job growth is at a snail’s pace in some metros and a rabbit’s race in others. Four metros—Boston, Dallas-Ft. Worth, Houston and Washington, D.C.—have recouped more than half of the jobs lost in the recession. Five metros— New York, Philadelphia, St. Louis, San Diego, Seattle—have established some momentum in their recoveries, having recouped close to one-fifth the jobs lost. The remaining metros—Atlanta, Baltimore, Chicago, Detroit, Los Angeles, Miami, Minneapolis, Phoenix, Riverside, San Francisco and Tampa—have barely begun to replace their lost jobs. A table showing the extent of the recovery in the top 20 metro areas appears at the top of the next page.May 2011 ©2011, Greater Houston Partnership Page 5
  • 6. HOUSTON—THE ECONOMY AT A GLANCE Recovery to Date, 20 Largest U.S. Metro Areas Jobs % Jobs % Metro Still to Go* Metro Still to Go* Recouped Recouped Recouped Recouped New York 76,100 19.5% 313,500 Detroit 13,900 2.9% 467,000 Los Angeles 36,200 6.6% 513,100 Phoenix 21,100 8.5% 225,800 Chicago 50,800 14.9% 290,000 San Francisco 1,700 1.0% 68,200 Dallas 84,600 54.3% 71,300 Riverside 4,200 2.4% 168,300 Philadelphia 25,200 17.4% 119,500 Seattle 26,400 18.7% 115,100 Houston 65,700 54.2% 55,500 Minneapolis 17,300 14.9% 98,600 Miami 27,200 11.1% 218,700 San Diego 23,200 22.8% 78,400 DC 64,200 67.0% 31,600 St. Louis 21,900 26.1% 62,000 Atlanta 11,000 4.9% 213,800 Tampa 2,900 2.1% 135,500 Boston 55,500 53.1% 49,100 Baltimore 6,400 12.2% 46,000 * Additional jobs needed to reach pre-recession employment levels. Source: U.S. Bureau of Labor Statistics The Original Premise — This article set out to test the popular conviction that Houston lags the nation going into a recession, leads the nation coming out, and the period of job loss in between is short and shallow. To summarize the analysis: • Houston was the last major metro area to enter the recession, not reporting job losses until September ’08 though the nation had entered the recession 10 months earlier. • The region lost a small share of total jobs—4.6 percent—compared to an average loss of 7.5 percent for the other major metros. • Job losses occurred over a shorter time frame—16 months— compared to an average of 30 months among the large metros, • And Houston has recouped a larger share of its lost jobs—54.2 percent— making it one of only four major metros to reach the half way point in the recovery. There seems to be little doubt that that Houston was one of the best metros in which to ride out the recession—and that wasn’t just wishful thinking. But that poses another question, why was Houston impacted less than the other metros? That question will be answered in a future issue of Houston—The Economy at a Glance. International Trade Rises —  The Houston-Galveston Customs District recorded trade valued at $38.1 billion for the first two months of ’11, up 29.4 percent from $29.5 billion during the same period last year. In addition to the growth in the dollarMay 2011 ©2011, Greater Houston Partnership Page 6
  • 7. HOUSTON—THE ECONOMY AT A GLANCE value of trade, the movement of commodities also increased. 47.5 million short tons have passed through the district so far this year, an 11.3 percent increase from the 42.7 short tons processed during the same period in ’10. Exports totaled $17.4 billion, up 32.7 percent from last year; and imports totaled $20.7 billion, up 26.6 percent from ’10. Houston’s five leading exports to date are: mineral fuel and oil ($5.7 billion), industrial machinery ($2.6 billion), organic chemicals ($2.4 billion), plastics ($1.1 billion) and cereals ($755.6 million). The five largest imports so far this year are: mineral fuel and oil ($13.5 billion), industrial machinery ($1.5 billion), iron and steel ($1.1 billion), electric machinery ($837.2 million) and organic chemicals ($661.1 million). Houston’s top five trade partners for the first two months of ’11 remained the same as ’10: Mexico, Venezuela, Brazil, China and Nigeria. The average annual GDP growth rate of these five countries typically remains around three percentage points greater than that of the world’s GDP growth. However, this spread is expected to decrease in ’11. The International Monetary Fund (IMF) predicts that the GDP growth rate for these five countries will average 5.5 percent in ’11 while the global GDP growth rate is predicted to be 4.5 percent. GDP Growth Comparison World vs. Houstons Top 5 Trade Partners 0.1 0.08 Annual GDP Growth Rate 0.06 World 0.04 Avg of  0.02 Houstons Top 5  Partners 0 ‐0.02 ‐0.04 Source: International Monetary FundMay 2011 ©2011, Greater Houston Partnership Page 7
  • 8. HOUSTON—THE ECONOMY AT A GLANCE Houston Airport System Passenger Travel Up —  The Houston Airport System (HAS) handled 3,448,422 passengers in March, up 0.7 percent from the 3,423,686 handled in March last year. International passenger traffic rose 3.2 percent, from 730,954 passengers in March ’10 to 754,073 in March this year. Domestic passenger traffic rose 2.1 percent, from 3,464,515 in March ’10 to 3,537,743 in March this year. While domestic travel accounted for 78.1 percent of all passengers in March ’11, air freight was more evenly divided among domestic and international markets. 47.4 percent of air freight shipped within the U.S. and 52.6 percent shipped internationally. Mexico remains Houston’s largest international destination for passengers, but Europe continues to dominate Houston’s air cargo market share. Regional Share of Passenger Travel and Air Cargo March 2011 Passenger Market Share (%) Air Cargo Market Share (%) Domestic 78.1 47.4 Mexico 7.8 0.7 Middle East 0.9 7.6 Central/South America 7.0 4.6 Europe 3.4 31.3 Asia/Africa/Australia 0.6 8.3 Canada 2.1 0.1 Source: Houston Airport System Office Market Shows Signs of Recovery —  CB Richard Ellis reports that in Q1/11, Houston’s office market saw net absorption of 357,911 square feet (sf), mostly Class A space. From Q4/10 to Q1/11, vacancy decreased slightly to 16.0 percent. The vacancy rate for Class A space was 12.4 percent, while Class B vacancy was 19.1 percent. Overall rental rates rose slightly to $23.17 in Q1/11 from $22.82 in Q4/10. The increased transaction activity in the market has encouraged landlords, and they’ve recently begun to raise rates and reduce concessions. The Houston industrial market remains one of the top five markets in the U.S, says CBRE research manager Lynn Cirillo. However, the market is not experiencing much speculative construction, and potential tenants are struggling to find the right property. Lease rates have remained flat, but may increase as the amount of quality space decreases. Rental rates averaged $0.48 in Q1/11. Vacancy also remained flat in Q1/11 at 6.5 percent. Houston’s industrial market saw slightly negative absorption of 26,879 sf in Q1/11. Over 48,000 Asian-Owned Firms in Houston Region — The number of Asian firms in the Houston region rose by more than 50 percent from ’02 to ’07, according to data recently released by the U.S. Census Bureau. In ’02, Asians owned 31,939 businessesMay 2011 ©2011, Greater Houston Partnership Page 8
  • 9. HOUSTON—THE ECONOMY AT A GLANCE and represented 7.6 percent of all firms in the region; while in ’07, there were 48,740 Asian-owned firms, accounting for 9.3 percent of all firms. The share of Asian-owned businesses is larger than would be expected given their share of population. Asians represent 6.1 percent of the region’s population, but own 9.3 percent of the region’s businesses. The majority of Asian-owned firms are small. The Census distinguishes between “em- ployer” and “non-employer” firms. Employer firms have payrolls and paid employees, while non-employer firms consist of self-employed individuals operating very small unincorporated businesses. Non-employer firms account for 76.5 percent of Houston’s Asian-owned firms, and employer firms represent 23.5 percent. Asian-owned firms in Houston reported $17.4 billion in revenue in ’07, 2.0 percent of the region’s total revenue. Patrick Jankowski, Marycruz García and Jenny Hsu contributed to this issue of The Economy at a Glance. ____________________________________ The Greater Houston Partnership is the primary advocate of Houston’s business community and is dedicated to building regional economic prosperity. Visit the Greater Houston Partnership on the World Wide Web at www.houston.org. Contact us by phone at 713-844-3600.May 2011 ©2011, Greater Houston Partnership Page 9
  • 10. HOUSTON—THE ECONOMY AT A GLANCEHouston Economic Indicators YEAR-TO-DATE A Service of the Greater Houston Partnership MONTHLY DATA TOTAL OR AVERAGE* Most Year % Most Year % Month Recent Earlier Change Recent Earlier ChangeENERGY U.S. Active Rotary Rigs Mar 11 1,720 1,419 21.3 1,716 * 1,345 * 27.6 Spot Crude Oil Price ($/bbl, West Texas Intermediate) Mar 11 102.86 80.77 27.3 93.43 * 77.97 * 19.8 Spot Natural Gas ($/MMBtu, Henry Hub) Mar 11 3.90 4.21 -7.3 4.12 * 5.08 * -18.9UTILITIES AND PRODUCTION Houston Purchasing Managers Index Mar 11 59.9 55.3 8.3 59.2 * 53.9 * 9.8 Nonresidential Electric Current Sales (Mwh, CNP Service Area) Mar 11 3,727,237 3,750,034 -0.6 11,617,574 11,384,882 2.0CONSTRUCTION Total Building Contracts ($, Houston MSA) Mar 11 688,443,000 748,102,000 -8.0 1,926,375,000 2,057,432,000 -6.4 Nonresidential Mar 11 234,935,000 186,745,000 25.8 788,965,000 649,476,000 21.5 Residential Mar 11 453,508,000 561,357,000 -19.2 1,137,410,000 1,407,956,000 -19.2 Building Permits ($, City of Houston) Mar 11 274,484,095 275,197,938 -0.3 687,460,330 702,192,708 -2.1 Nonresidential Mar 11 179,976,438 173,635,497 3.7 457,186,489 438,207,363 4.3 New Nonresidential Mar 11 61,755,131 75,841,546 -18.6 154,978,284 172,023,300 -9.9 Nonresidential Additions/Alterations/Conversions Mar 11 118,221,307 97,793,951 20.9 302,208,205 266,184,063 13.5 Residential Mar 11 94,507,657 101,562,441 -6.9 230,273,841 263,985,345 -12.8 New Residential Mar 11 74,348,501 83,994,493 -11.5 182,565,871 200,944,871 -9.1 Residential Additions/Alterations/Conversions Mar 11 20,159,156 17,567,948 14.7 47,707,970 63,040,474 -24.3 Multiple Listing Service (MLS) Activity Closings Mar 11 5,509 5,800 -5.0 12,854 12,841 0.1 Median Sales Price - SF Detached Mar 11 150,900 153,500 -1.7 146,967 * 147,753 * -0.5 Active Listings Mar 11 51,091 49,030 4.2 50,151 * 46,966 * 6.8EMPLOYMENT (Houston-Sugar Land-Baytown MSA) Nonfarm Payroll Employment Mar 11 2,559,800 2,508,000 2.1 2,544,700 * 2,491,200 * 2.1 Goods Producing (Natural Resources/Mining/Const/Mfg) Mar 11 478,600 465,400 2.8 476,600 * 464,400 * 2.6 Service Providing Mar 11 2,081,200 2,042,600 1.9 2,068,100 * 2,026,800 * 2.0 Unemployment Rate (%) - Not Seasonally Adjusted Houston-Sugar Land-Baytown MSA Mar 11 8.3 8.6 8.5 * 8.7 * Texas Mar 11 8.1 8.3 8.3 * 8.4 * U.S. Mar 11 9.2 10.2 9.5 * 10.4 * Unemployment Insurance Claims (Gulf Coast WDA) Initial Claims Mar 11 19,329 22,780 -15.1 19,131 * 22,415 * -14.7 Continuing Claims Mar 11 80,850 119,750 -32.5 81,103 * 117,520 * -31.0TRANSPORTATION Port of Houston Authority Shipments (Short Tons) Feb 11 3,473,295 2,981,289 16.5 40,247,841 36,787,204 9.4 Air Passengers (Houston Airport System) Mar 11 4,291,816 4,195,469 2.3 11,570,815 11,434,021 1.2 Domestic Passengers Mar 11 3,537,743 3,464,515 2.1 9,456,255 9,404,731 0.5 International Passengers Mar 11 754,073 730,954 3.2 2,114,560 2,029,290 4.2 Landings and Takeoffs Mar 11 75,884 72,699 4.4 209,065 209,317 -0.1 Air Freight (000 lb) Mar 11 83,199 76,036 9.4 224,903 207,398 8.4 Enplaned Mar 11 42,098 39,079 7.7 111,616 109,183 2.2 Deplaned Mar 11 41,101 36,957 11.2 113,287 98,215 15.3CONSUMERS New Car and Truck Sales (Units, Houston MSA) Mar 11 22,356 19,570 14.2 62,934 59,471 5.8 Cars Mar 11 9,872 9,093 8.6 27,104 27,391 -1.0 Trucks, SUVs and Commercials Mar 11 12,484 10,477 19.2 35,830 32,080 11.7 Total Retail Sales ($000,000, Houston MSA, NAICS Basis) 3Q10 22,150 21,282 4.1 67,230 61,116 10.0 Consumer Price Index for All Urban Consumers (82-84=100) Houston-Galveston-Brazoria CMSA Mar 11 197.224 192.412 2.5 196.538 * 192.042 * 2.3 United States Mar 11 223.467 217.631 2.7 221.666 * 217.020 * 2.1 Hotel Performance (Harris County) Occupancy (%) 4Q10 53.8 51.6 51.5 * 56.2 * Average Room Rate ($) 4Q10 90.51 91.29 -0.9 92.04 * 95.80 * -3.9 Revenue Per Available Room ($) 4Q10 48.67 47.14 3.2 51.46 * 54.05 * -4.8POSTINGS AND FORECLOSURES Postings (Harris County) Apr 11 4,094 4,284 -4.4 16,696 15,976 4.5 Foreclosures (Harris County) Apr 11 934 1,180 -20.8 3,396 4,590 -26.0May 2011 ©2011, Greater Houston Partnership Page 10
  • 11. HOUSTON—THE ECONOMY AT A GLANCESources Rig Count Baker Hughes Incorporated Port Shipments Port of Houston Authority Spot WTI, Spot Natural Gas U.S. Energy Information Agency Aviation Aviation Department, City of Houston Purchasing Managers National Association of Houston Index Purchasing Management – Car and Truck Sales TexAuto Facts Report, InfoNation, Houston, Inc. Inc., Sugar Land TX Electricity CenterPoint Energy Retail Sales Texas Comptroller’s Office Building Construction Contracts McGraw-Hill Construction Consumer Price Index U.S. Bureau of Labor Statistics City of Houston Building Permits Building Permit Department, City Hotels PKF Consulting/Hospitality Asset of Houston Advisors International MLS Data Houston Association of Realtors® Postings, Foreclosures Foreclosure Information & Listing Employment, Unemployment Texas Workforce Commission Service STAY UP TO DATE!If you would like to receive this electronic publication on the first working day of each month, please e-mail your request for Economy at a Glance to rpate@houston.org. Include your name, title and phonenumber and your company’s name and address. Archived copies are available to Partnership Membersin the Members Only section at www.houston.org. For information about joining the Greater HoustonPartnership and gaining access to this powerful resource, call Member Services at 713-844-3683.The foregoing table is updated whenever any data change — typically, 11 or so times per month. Ifyou would like to receive those updates by e-mail, usually accompanied by commentary, please e-mailyour request for Key Economic Indicators to rpate@houston.org with the same identifying infor-mation.You may request Glance and Indicators in the same e-mail.May 2011 ©2011, Greater Houston Partnership Page 11
  • 12. HOUSTON—THE ECONOMY AT A GLANCEHOUSTON MSA NONFARM PAYROLL EMPLOYMENT (000) Change from % Change from Mar 11 Feb 11 Mar 10 Feb 11 Mar 10 Feb 11 Mar 10Total Nonfarm Payroll Jobs 2,559.8 2,542.9 2,508.0 16.9 51.8 0.7 2.1Total Private 2,172.0 2,156.7 2,124.5 15.3 47.5 0.7 2.2Goods Producing 478.6 476.9 465.4 1.7 13.2 0.4 2.8Service Providing 2,081.2 2,066.0 2,042.6 15.2 38.6 0.7 1.9 Private Service Providing 1,693.4 1,679.8 1,659.1 13.6 34.3 0.8 2.1 Mining and Logging 85.2 84.0 78.1 1.2 7.1 1.4 9.1 Oil & Gas Extraction 47.2 46.9 45.5 0.3 1.7 0.6 3.7 Support Activities for Mining 36.7 35.9 31.5 0.8 5.2 2.2 16.5 Construction 172.3 173.8 170.7 -1.5 1.6 -0.9 0.9 Manufacturing 221.1 219.1 216.6 2.0 4.5 0.9 2.1 Durable Goods Manufacturing 145.1 142.4 138.0 2.7 7.1 1.9 5.1 Nondurable Goods Manufacturing 76.0 76.7 78.6 -0.7 -2.6 -0.9 -3.3 Wholesale Trade 132.0 131.9 130.3 0.1 1.7 0.1 1.3 Retail Trade 265.3 259.9 258.2 5.4 7.1 2.1 2.7 Transportation, Warehousing and Utilities 121.3 122.7 121.1 -1.4 0.2 -1.1 0.2 Utilities 16.3 16.2 16.1 0.1 0.2 0.6 1.2 Air Transportation 23.7 23.7 24.3 0.0 -0.6 0.0 -2.5 Truck Transportation 20.6 20.6 19.4 0.0 1.2 0.0 6.2 Pipeline Transportation 10.2 10.2 10.0 0.0 0.2 0.0 2.0 Balance, incl Warehousing, Water & Rail Transport 50.5 52.0 51.3 -1.5 -0.8 -2.9 -1.6 Information 30.2 30.4 32.2 -0.2 -2.0 -0.7 -6.2 Telecommunications 15.4 15.5 16.5 -0.1 -1.1 -0.6 -6.7 Finance & Insurance 86.9 87.5 86.9 -0.6 0.0 -0.7 0.0 Real Estate & Rental and Leasing 47.0 47.0 48.9 0.0 -1.9 0.0 -3.9 Professional & Business Services 366.8 361.5 352.8 5.3 14.0 1.5 4.0 Professional, Scientific & Technical Services 176.6 175.2 175.5 1.4 1.1 0.8 0.6 Legal Services 22.6 22.5 22.7 0.1 -0.1 0.4 -0.4 Accounting, Tax Preparation, Bookkeeping 18.8 19.0 20.2 -0.2 -1.4 -1.1 -6.9 Architectural, Engineering & Related Services 57.2 57.5 58.1 -0.3 -0.9 -0.5 -1.5 Computer Systems Design & Related Services 25.4 25.3 24.1 0.1 1.3 0.4 5.4 Admin & Support/Waste Mgt & Remediation 170.1 165.7 158.0 4.4 12.1 2.7 7.7 Administrative & Support Services 161.5 157.4 150.3 4.1 11.2 2.6 7.5 Employment Services 58.7 57.6 50.9 1.1 7.8 1.9 15.3 Educational Services 43.5 43.6 42.5 -0.1 1.0 -0.2 2.4 Health Care & Social Assistance 272.0 269.6 263.0 2.4 9.0 0.9 3.4 Arts, Entertainment & Recreation 26.0 24.9 26.6 1.1 -0.6 4.4 -2.3 Accommodation & Food Services 210.0 208.2 205.6 1.8 4.4 0.9 2.1 Other Services 92.4 92.6 91.0 -0.2 1.4 -0.2 1.5 Government 387.8 386.2 383.5 1.6 4.3 0.4 1.1 Federal Government 27.7 27.7 28.9 0.0 -1.2 0.0 -4.2 State Government 72.6 72.2 71.9 0.4 0.7 0.6 1.0 State Government Educational Services 38.3 38.1 38.1 0.2 0.2 0.5 0.5 Local Government 287.5 286.3 282.7 1.2 4.8 0.4 1.7 Local Government Educational Services 200.9 200.2 197.8 0.7 3.1 0.3 1.6SOURCE: Texas Workforce CommissionMay 2011 ©2011, Greater Houston Partnership Page 12
  • 13. HOUSTON—THE ECONOMY AT A GLANCE OFFICE OCCUPANCY RATES HOUSTON CBD AND SUBURBS 2002 - 2012 95 90 OCCUPANCY (%) 85 80 75 Q1/02 Q1/03 Q1/04 Q1/05 Q1/06 Q1/07 Q1/08 Q1/09 Q1/10 Q1/11 Q1/12 CBD SUBURBS Source: CB Richard Ellis HOUSTON MSA EMPLOYMENT 2002-2012 2.65 160 2.60 140 2.55 120 NONFARM PAYROLL EMPLOYMENT (000,000) 2.50 100 2.45 80 2.40 60 12-MONTH CHANGE (000) 2.35 40 2.30 20 2.25 0 2.20 -20 2.15 -40 2.10 -60 2.05 -80 2.00 -100 1.95 -120 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 12-MONTH CHANGE JOBS Source: Texas Workforce CommissionMay 2011 ©2011, Greater Houston Partnership Page 13
  • 14. HOUSTON—THE ECONOMY AT A GLANCE GOODS-PRODUCING AND SERVICE-PROVIDING EMPLOYMENT HOUSTON MSA 2002-2012 550 2.25 540 2.20 530 2.15 2.10 520 SERVICE-PROVIDING (000,000) 2.05 GOODS-PRODUCING (000) 510 2.00 500 1.95 490 1.90 480 1.85 470 1.80 460 1.75 450 1.70 440 1.65 430 1.60 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 GOODS-PRODUCING JOBS SERVICE-PROVIDING JOBS Source: Texas Workforce Commission UNEMPLOYMENT RATE HOUSTON & U.S. 2002-2012 11 10 9 8 PERCENT OF LABOR FORCE 7 6 5 4 3 2 1 0 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 HOUSTON U.S. Source: Texas Workforce CommissionMay 2011 ©2011, Greater Houston Partnership Page 14
  • 15. HOUSTON—THE ECONOMY AT A GLANCE SPOT MARKET ENERGY PRICES 2002 - 2012 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-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 WTI MONTHLY WTI 12-MO AVG GAS MONTHLY GAS 12-MO AVG Source: U.S. Energy Information Administration INFLATION: 12-MONTH CHANGE 2002-2012 6% 5% 4% 3% 2% 1% 0% -1% -2% -3% Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 HOUSTON CPI-U U.S. CPI-U Source: U.S. Bureau of Labor StatisticsMay 2011 ©2011, Greater Houston Partnership Page 15

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