houston economic update august 2011

8/6/2019 Houston Economic Update August 2011

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August 2011 2011, Greater Houston Partnership

A publication of the Greater Houston Partnership Volume 20, Number 8August 2011

Long-Term Outlook Bright Over the next 25years, size, the region will add more than 3 million residents,and employment will grow by nearly 1.5 million jobs.the latest forecast by Ray Perryman, the Waco-

based economist who has studied Texas and its metroeconomies for four decades1.

-area economy has been on a decidedlyupward trend and is expected to continue to demon-

During the 10 35 time frame, Perryman forecastsexpansion in all sectors, but the report singles outfacturing, business services and personal services sectors,along with the Port of Houston, as major c Approximately six of every 10 workers added over the next 25 years will be in theservice sectors, the report notes. Perryman expects Houston to outperform most

U.S. metros and account for over theforecast period.

Houston-Sugar Land-Baytown MSA Economic Indicators

Key Indicator 10 35 CAGRReal Gross Product (billions)2 $339.99 $816.8 3.58%

Population (millions) 5.96 9.33 1.81%

Employment (millions) 2.64 4.08 1.75%

Real Personal Income (billions) $245.27 $651.94 3.99%

Real Retail Sales (billions)2 $85.21 $229.22 4.04%

Housing Permits 29,076 47,205 1.96%

1Compound Annual Growth Rate

205 Constant Dollars

Source: The Perryman Economic Forecast, Long-Term Outlook For The United States, Texas, MajorMetropolitan Areas, and Regions, Spring/Summer 2011

1The Perryman Economic Forecast, Long-Term Outlook For The United States, Texas, Major Metropolitan Areas, andRegions is available for purchase from The Perryman Group, 800.749.8705 [email protected]

This issue ofGlance looks at-term

forecast for the region,

problems with the localunemployment rate, jobs

recovered to date, the nascent

estate market, traffic at the

airport and trade through the

customs district.


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HOUSTONTHE ECONOMY AT A GLANCE


s Just YetHoustons Juneunemployment rate stood at 9.0 percent, up from 8.2 percent in May. The increasecause for alarm, though. It reflects historical patterns stemming largely fromteens seeking summer work and the expiration of 10-month contracts for manyteachers. Hou unemployment rate has increased from May to June for the

past 10 years, the increase typically ranging from 0.4 to 0.9 percent, with 0.65percent being the average. Th 0.8 percent increase, while slightly abovethe norm, may reflect discouraged workers returning to the job market.

According to Bureau of Labor Statistics (BLS) methodology, if people stopseeking work (which many did during the recession), they arent counted asunemployed. As the economy recovers, which is clearly the case in Houston,discouraged workers will reenter the job market and the unemployment rate goesup. ThatJune, the civilian labor force grew by 20,800 workers at the same time. Ironically,, it may continue to report high unemploymentrates.

The Uneven Jobs Recovery, when the recession ended here,the Houston-Sugar Land-Baytown Metropolitan Statistical Area has recouped118,300 jobs, or about three-fourths of the 152,800 lost during the recession.2 But

2 This is a seasonally unadjusted number. On aseasonally adjustedbasis, the region lost fewer jobs121,200and has sincerecovered 92,400 of them, or 76.2 percent. However, seasonally adjusted data is not available for the individual industrysectors so any analysis of the employment must be performed on unadjusted data..

June Unemployment Rate, Houston MSAAnd Change from Previous Month

Year June Rate Change From May

02 6.6 +0.7

03 7.6 +0.9

04 6.7 +0.6

05 5.7 +0.4

06 5.5 +0.5

07 4.6 +0.6

08 5.0 +0.6

09 8.2 +0.9

10 8.7 +0.5

11 9.0 +0.8

Source: Texas Workforce Commission


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the recovery has been uneven. Four sectors personal services, health care,accommodation and food services, and educational serviceshave recovered all

jobs lost and continue to grow. Employment in those sectors stands above their pre-recession peaks. In contrast, four sectorsfinance, construction, real estate,and informationhave recovered less than one-fifth of their losses. Given recent

trends, it will be some time before those sectors return to their previous peaks. Soinfluencing recovery?

the region adds nearly 120,000 residents peryearthe demand for services continues to grow. The other services sectorincludes auto and household repairs, salons and barber shops, dry cleaning, funeralservices and religious, business, civic and social organizations. This sector lost3,700 jobs in the recession, but has created 5,900 during the recovery.

Health care never lost jobs during the recession. This sector added 16,000 jobs and another 8,900 jobs from the trough to the

present. Two factors create a growing demand for health carea growing population, noted above, and an aging population. As -plus population grows by 15,000 residents each year, its demand for health careservices will grow as well.

0.0%14.1%

16.4%

16.4%

20.4%

39.2%

45.8%

50.9%

51.5%

68.2%

80.0%

90.0%

98.3%

+100%

+100%

+100%

+100%

Finance

Construction

Real Estate

Information

Transport & Warehouse

Manufacturing

Professional Services

Retail Trade

Wholesale Trade

Oil & Gas

Utilities

Administrative Support

Arts, Entertainment

Education Services

Hotels & Food Services

Health Care

Other Services

Source: Texas Workforce Commission, July 2011

% Jobs Lost Recovered So Far


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Accommodation and food services lost 13,700 jobs in the recession but has added more than20,600 jobs in the recovery. The bulk of thegrowth has occurred in food services, againsupported by the growing population, and by

growing consumer confidence, at least locally.The restoration of corporate travel budgetsslashed during the recession has helpedHouston recover two-thirds of the jobs lost inaccommodations.

Education services also never lost jobs duringthe recession. It added 1,200 jobs from peak to trough and another 1,200 fromtrough to the present. Many workers, fearful of losing their jobs, enrolled in classesto upgrade their skills and increase their value to their employers. Those who had

already lost jobs returned to school to increase their marketability or acquired skillsfor career changes.

Arts, entertainment and recreation lost 5,700 jobs during the recession. Uncer-tain about their financial futures, many consumers reduced their discretionaryspending. The collapse of the stock market and dramatic fall in corporate profitsreduced grants and other funds available to the arts community. Currently, thesector appears to have recovered all the jobs lost in the recession; however unclear whether this is a true recovery or the artifice of measuring job growthduring the summer peak season.

Administrative support lost 28,200 jobs in the recession. This sector includesoffice administrative services, temporary help, security services, and janitorial andwaste management services. The bulk of the losses occurred in two subsectorsemployment services and services to buildings. During layoffs, contract workersare the first to be let go. Also, there was less need to clean space vacated during therecession. As the economy improves, employers reluctant to hire full-time

permanent workers have taken on contract workers to handle increased business.The office market is experiencing positive absorption, which means there is more

occupied space to be cleaned. As a result, 23,000 jobs have been recouped,including all those in building services and two-thirds of those in employmentservices.

Utilities lost the fewest jobs of any sector. Of the 500 lost, 400 have beenrecovered. This sector has benefited from continued population growth and thegenerally improving economy.

Personal services, health care,

accommodations and foodservices, and educational services

now employ more workers than

they did prior to the recession. Atthe opposite end of the spectrum,

finance, construction, real estateand information have yet to

experience significant job growth.


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The collapse of oil prices from near $150 a barrel to a low near $35 a barrelcontributed to the loss of 2,900 oil and gas extraction jobs. The price collapse ledto a drilling collapse, which was exacerbated by the Gulf of Mexico drillingmoratorium. Oil field services lost 12,700 jobs. The recovery in oil prices and thefrenetic pace of drilling in the oil and gas shale plays have rejuvenated the

industry, recouping all the extraction jobs and 7,300 of the service jobs.

The recession brought a decline in global trade. In dollar terms, trade through theHouston-Galveston Customs District dropped by one-third, contributing to a lossof 10,100 jobs in wholesale trade. Most of the loss occurred in durable goods,mainly machinery and equipment, as companies cut back capital expenditures. Therebound in global trade and the need to restock depleted inventories has led towholesale trade recouping 5,200 of the jobs lost in the recession.

Retail trade is highly sensitive to job growth, income growth and consumer

confidence. All three plummeted during the recession. As a result, local merchantscut 22,200 jobs. Recent local job growth, especially in well-paid industries such asenergy, has generated increasing retail sales and subsequently rising retailemployment. This sector has recouped 11,300 of the jobs lost in the recession.

Professional services lost 14,400 jobs. Engineering was especially hard hit ascompanies delayed or canceled major projects. Job growth in accounting,engineering and legal services remains weak. Computer systems design has createdas many jobs (1,700) as these three sectors combined. As a whole, this sector hasrecouped 6,600 of the jobs it lost.

When consumers and businesses stop buying, manufacturersimple as that. The downturn in drilling activity reduced the need for oil fieldequipment. The drop-off in construction reduced the need for structural steel.These two industries accounted for more than half the jobs lost in manufacturing,which numbered 29,300 by the end of the recession. Conversely, those two sectorsaccount for 8,200 of the 11,300 jobs recovered so far.

The reduction in global trade, the drop in manufacturing activity and the cutback inretail sales contributed to the loss of 9,800 transportation and warehousingjobs.

Thus far, 2,000 have been recouped. Given the strong customs district traffic, its

The information sector includes newspapers, periodicals, books, directories,software, motion pictures, sound recording, radio and television broadcasting,wireless telecommunications and data processing services. This sector lost 6,100

jobs. The recession exacerbated a long-term trend: the industry has been losing


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jobs nation their news and information.

Real estate lost 6,100 jobs in the recession. Declining home sales and weak officeleasing hit the industry hard. On an annual basis, 28,000 fewer homes are being

sold now than at the peak. The office market endured 2 years of negativeabsorption. Demand for housing and office space is improving, but remains weak.Only 1,000 of the jobs lost have been recouped so far.

Construction suffered the greatest job cuts of all sectors, losing 39,800 from peakto troughone in every four local jobs lost in the recession. The end of subprimefinancing, severe job cuts in other industries, and plummeting consumerconfidence devastated home construction. With the onset of the recession,construction financing disappeared. Little office or industrial space was built.Surplus production capacity and concerns over proposed cap and trade regulations

curtailed construction along the ship channel. Finally, federal, state, county andcity budget woes reduced the number of contracts being let for infrastructure

projects. This sector has recovered 5,500 jobs, less than one-seventh of the jobslost, and will be among the last to fully recover.

The consolidation of the banking industry, the collapse of the mortgage market,and the reluctance to make loans contributed to the financeof 5,200 jobs. This sector has yet to recover any of the jobs lost in the recession.

Government often lags the rest of the economy going into a recession and is

among the last to come out. Thats the case again this time. The public sectorstarted reporting jobs losses only recently. The length of the government sectort be known for some time.

Long-Awaited Recovery in Real Estate , retail andresidential markets show signs of recovery.

Houston absorbed 434,473 square feet of office space in the second quarter, reportsJones Lang LaSalle. Strong activity in several submarketsnotably the CentralBusiness District (CBD), Katy Freeway/Energy Corridor, West Loop/Galleria and

The Woodlandsmade it the third consecutive quarter of positive absorption forthe region.

The vacancy rate for industrial space dropped from 6.5 percent in the first quarterto 6.0 percent in the second quarter, reports CB Richard Ellis. With 1.3 millionsquare feet absorbed in the second quarter and only 1.8 million square feet underconstruction, supply and demand remain in balance. All submarkets reported


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positive absorption in the second quarter, with the exception of the CBD, whichreported minimal (-5,157 square feet) negative absorption.

The retail sector has reported four consecutive quarters of positive absorption,according to CB Richard Ellis. The market recorded

the third quarter of, the sectorhas absorbed 1.2 million square feet of space.

The Houston Association of REALTORS influenced by the First Time Home Buyers Tax Credit; eligible homebuyers haduntil September 30 to qualify for the incentive. There was no such incentive in

place this June. The fact that sales fell only 14 units shy of last June, when saleswere propped up by the tax credit, suggests the market may be stabilizing.

International Trade GrowthThe Houston-Galveston Customs District handledtrade valued at $106.0 billion through May this year, up 26.3 percent from $83.9

billion during the same period last year. Tonnage through the Houston regionports grew 2.5 percent to 120.8 million short tons through , compared to117.8 million short tons during the same period last year. If current patterns holdwide margin.

$22.

1

$15.9

$11.3

$12.

5

$8.9

$9.

1

$29.9

$19.3

$14.9

$11.

9

$10.

7

$10.

3

0

5

10

15

20

25

30

35

Mexico Venezuela Brazil Nigeria Russia China

$

Billions

Source: U.S. Census Bureau and GHP Calculations

Historic and Projected Values,

Houston's Top Six Trading Partners

Actual '10 Forecast '11


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quarter were mineral fuel and oil ($15.2 billion), industrial machinery ($7.3billion), organic chemicals ($6.7 billion), plastics ($3.2 billion), and cereals ($2.3billion).

Year-to-date i

leading imports so far this year are mineral fuel and oil ($38.3 billion), industrialmachinery ($3.7 billion), iron and steel ($2.9 billion), electric machinery ($2.5billion), and organic chemicals ($1.9 billion).

ing partners (combined imports and exports) through the first in ($8.0 billion), Brazil ($6.2 billion), Nigeria ($5.0 billion), Russia ($4.5 billion) andChina ($4.3 billion). Based on current trends, trade with Mexico, Venezuela,Brazil, Russia and China should surpass levels, while trade with Nigeria mayslip below last total.

Air Traffic Growth The Houston Airport System (HAS) handled 4,588,785passengers in June, a 1.1 percent increase from the 4,538,752 handled in June lastyear. For the first half of this year, 24,437,799 passengers traveled throughAs it has for many years, growth in domestic travel continuesto lag behind international travel. While international travel rose by 4.2 percentthrough June, domestic travel increased only 0.6 percent.

Freight traffic remains strong within HAS, moving 77.0 million pounds in June

volume grew in both domestic and international markets for IAH, while cargovolume decreased for Hobby.

Fuel expenses continue to exert pressure on airfares. U.S. Gulf Coast kerosene jet.00 in


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I make dozens of presentations on the economy each the year.During a recent Q&A session I was asked

provided an off-the cuff answer, but the question led me to ponder for Houston, and will we recognize it when we see it gathering data, crunching numbers, and developing fresh insights into the question

ofnormal and the definition of recovery. I am packaging my research into a presentation titled, Getting back to Normal: The Last Leg on the Road towhich I will present Tuesday, August 23, in the offices of the GHP.You are invited to attend.

My presentation starts at 8 a.m. in the GHP Board Room. There is a $20 fee toattend, which covers the cost of the light breakfast fare that will be served. This isa members-only event. If you are interested in attending, you can sign up at theEvents section of the GHP website at http://events.houston.org/Events/Upcoming-Events/. I hope to see you August 23rd. Thanks.

Patrick Jankowski

VP Research, GHP

Patrick Jankowski andJenny Hsu contributed to this issue of

The Economy at a Glance.

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HOUSTON MSA NONFARM PAYROLL EMPLOYMENT (000)Change from % Change from

June '11 May '11 June '10 May '11 June '10 May '11 June '10

Total Nonfarm Payroll Jobs 2,593.8 2,583.6 2,542.9 10.2 50.9 0.4 2.0

Total Private 2,216.6 2,197.8 2,161.1 18.8 55.5 0.9 2.6

Goods Producing 492.0 485.1 470.3 6.9 21.7 1.4 4.6

Service Providing 2,101.8 2,098.5 2,072.6 3.3 29.2 0.2 1.4

Private Service Providing 1,724.6 1,712.7 1,690.8 11.9 33.8 0.7 2.0

Mining and Logging 89.2 87.7 81.1 1.5 8.1 1.7 10.0

Oil & Gas Extraction 48.3 47.8 46.1 0.5 2.2 1.0 4.8

Support Activities for Mining 38.4 37.9 34.0 0.5 4.4 1.3 12.9

Construction 175.3 173.3 171.7 2.0 3.6 1.2 2.1

Manufacturing 227.5 224.1 217.5 3.4 10.0 1.5 4.6

Durable Goods Manufacturing 148.3 146.1 139.4 2.2 8.9 1.5 6.4

Nondurable Goods Manufacturing 79.2 78.0 78.1 1.2 1.1 1.5 1.4

Wholesale Trade 135.0 134.2 131.6 0.8 3.4 0.6 2.6

Retail Trade 267.4 266.6 262.0 0.8 5.4 0.3 2.1

Transportation, Warehousing and Utilities 123.1 122.0 122.2 1.1 0.9 0.9 0.7

Utilities 16.4 16.3 16.2 0.1 0.2 0.6 1.2Air Transportation 24.1 24.0 24.0 0.1 0.1 0.4 0.4

Truck Transportation 21.1 20.9 20.1 0.2 1.0 1.0 5.0

Pipeline Transportation 10.4 10.3 10.2 0.1 0.2 1.0 2.0Balance, incl Warehousing, Water & Rail Transport 51.1 50.5 51.7 0.6 -0.6 1.2 -1.2

Information 30.0 29.9 32.5 0.1 -2.5 0.3 -7.7Telecommunications 15.3 15.1 16.7 0.2 -1.4 1.3 -8.4

Finance & Insurance 86.4 86.6 86.9 -0.2 -0.5 -0.2 -0.6

Real Estate & Rental and Leasing 48.0 47.5 49.3 0.5 -1.3 1.1 -2.6

Professional & Business Services 377.9 374.7 363.6 3.2 14.3 0.9 3.9Professional, Scientific & Technical Services 179.1 177.3 176.3 1.8 2.8 1.0 1.6

Legal Services 23.1 22.7 23.4 0.4 -0.3 1.8 -1.3

Accounting, Tax Preparation, Bookkeeping 17.2 17.3 17.0 -0.1 0.2 -0.6 1.2Architectural, Engineering & Related Services 57.7 57.1 59.0 0.6 -1.3 1.1 -2.2

Computer Systems Design & Related Services 25.7 25.6 24.7 0.1 1.0 0.4 4.0

Admin & Support/Waste Mgt & Remediation 180.0 178.5 167.8 1.5 12.2 0.8 7.3

Administrative & Support Services 169.3 167.7 159.8 1.6 9.5 1.0 5.9

Employment Services 61.2 61.0 57.9 0.2 3.3 0.3 5.7

Educational Services 42.8 43.7 42.4 -0.9 0.4 -2.1 0.9

Health Care & Social Assistance 268.8 269.9 266.5 -1.1 2.3 -0.4 0.9

Arts, Entertainment & Recreation 30.2 28.2 30.7 2.0 -0.5 7.1 -1.6

Accommodation & Food Services 219.2 214.5 210.4 4.7 8.8 2.2 4.2

Other Services 95.8 94.9 92.7 0.9 3.1 0.9 3.3

Government 377.2 385.8 381.8 -8.6 -4.6 -2.2 -1.2

Federal Government 27.5 27.6 35.5 -0.1 -8.0 -0.4 -22.5

State Government 68.4 70.5 69.2 -2.1 -0.8 -3.0 -1.2State Government Educational Services 35.4 37.4 35.4 -2.0 0.0 -5.3 0.0

Local Government 281.3 287.7 277.1 -6.4 4.2 -2.2 1.5

Local Government Educational Services 193.1 200.2 191.1 -7.1 2.0 -3.5 1.0

SOURCE: Texas Workforce Commission


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Source: Institute for Supply Management-Houston


30

35

40

45

50

55

60

65

70

Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

PURCHASING MANAGERS INDEXHOUSTON & U.S. 2002-2012

HOUSTON U.S.

-120

-100

-80

-60

-40

-20

0

20

40

60

80

100

120

140

160

1.95

2.00

2.05

2.10

2.15

2.20

2.25

2.30

2.35

2.40

2.45

2.50

2.55

2.60

2.65


12-MONTHCHANGE(000)

NONF

ARM

PAYROLLEMPLOYMENT(000,000)

HOUSTON MSA EMPLOYMENT2002-2012

12-MONTH CHANGE JOBS


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1.60

1.65

1.70

1.75

1.80

1.85

1.90

1.95

2.00

2.05

2.10

2.15

2.20

2.25

430

440

450

460

470

480

490

500

510

520

530

540

550


SERVICE-PROVIDING

(000,000)

GOODS-PRODUCING

(000)

GOODS-PRODUCING AND SERVICE-PROVIDING EMPLOYMENTHOUSTON MSA 2002-2012

GOODS-PRODUCING JOBS SERVICE-PROVIDING JOBS

0

1

2

3

4

5

6

7

8

9

10

11

Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11

PERCENTOFLABORFORCE

UNEMPLOYMENT RATEHOUSTON & U.S. 2002-2012

HOUSTON U.S.


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Source:U.S. Energy Information Administration

Source: U.S. Bureau

0

4

8

12

16

20

24

28

0

20

40

60

80

100

120

140


HENRYHUBNATURALGAS($/MMBTU)

W

ESTTEXASINTERMEDIATE($/BBL)

SPOT MARKET ENERGY PRICES2002 - 2012

WTI MONTHLY WTI 12-MO AVG GAS MONTHLY GAS 12-MO AVG

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%


INFLATION: 12-MONTH CHANGE2002-2012

HOUSTON CPI-U U.S. CPI-U


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Houston Economic Indicators

A Service of the Greater Houston Partnership

Most Year % Most Year %

Month Recent Earlier Change Recent Earlier Change

ENERGY

U.S. Active Rotary Rigs June '11 1,860 1,531 21.5 1,774 * 1,428 * 24.2

Spot Crude Oil Price ($/bbl, West Texas Intermediate) June '11 95.87 75.24 27.4 98.18 * 77.91 * 26.0

Spot Natural Gas ($/MMBtu, Henry Hub) June '11 4.50 4.82 -6.6 4.22 * 4.66 * -9.4

UTILITIES AND PRODUCTION

Houston Purchasing Managers Index June '11 61.4 55.6 10.4 57.3 * 52.4 * 9.4

Nonresidential Electric Current Sales (Mwh, CNP Service Area) May '11 4,315,317 4,150,542 4.0 20,019,110 19,545,221 2.4

CONSTRUCTION

Total Building Contracts ($, Houston MSA) May '11 706,972,000 839,872,000 -15.8 3,405,098,000 3,779,557,000 -9.9

Nonresidential May '11 291,740,000 384,289,000 -24.1 1,384,078,000 1,410,365,000 -1.9

Residential May '11 415,232,000 455,583,000 -8.9 2,021,020,000 2,369,192,000 -14.7

Building Permits ($, City of Houston) May '11 311,260,200 338,766,046 -8.1 1,304,907,809 1,333,474,827 -2.1

Nonresidential May '11 239,101,648 236,421,670 1.1 893,268,952 860,831,177 3.8

New Nonresidential May '11 95,781,160 48,901,000 95.9 276,250,249 290,503,011 -4.9

Nonresidential Additions/Alterations/Conversions May '11 143,320,488 187,520,670 -23.6 617,018,703 570,328,166 8.

Residential May '11 72,158,552 102,344,376 -29.5 411,638,857 472,643,650 -12.9

New Residential May '11 54,382,941 71,845,143 -24.3 330,102,251 356,900,371 -7.5

Residential Additions/Alterations/Conversions May '11 17,775,611 30,499,233 -41.7 81,536,606 115,743,279 -29.

Multiple Listing Service (MLS) Activity

Closings June '11 6,520 6,535 -0.2 30,838 32,364 -4.7

Median Sales Price - SF Detached June '11 161,000 157,500 2.2 151,142 * 150,837 * 0.2

Active Listings June '11 51,342 53,934 -4.8 51,342 * 53,934 * -4.8

EMPLOYMENT (Houston-Sugar Land-Baytown MSA)

Nonfarm Payroll Employment June '11 2,593,800 2,542,900 2.0 2,563,500 * 2,513,300 * 2.0

Goods Producing (Natural Resources/Mining/Const/Mfg) June '11 492,000 470,300 4.6 481,000 * 466,200 * 3.2

Service Providing June '11 2,101,800 2,072,600 1.4 2,082,500 * 2,047,100 * 1.7

Unemployment Rate (%) - Not Seasonally Adjusted

Houston-Sugar Land-Baytown MSA June '11 9.0 8.7 8.5 * 8.5 *

Texas June '11 8.8 8.4 8.2 * 8.3 *

U.S. June '11 9.3 9.6 9.2 * 9.9 *

Unemployment Insurance Claims (Gulf Coast WDA)

Initial Claims June '11 22,523 23,729 -5.1 19,784 * 22,449 * -11.9Continuing Claims June '11 82,436 108,819 -24.2 79,793 * 109,619 * -27.2

TRANSPORTATION

Port of Houston Authority Shipments (Short Tons) June '11 3,411,089 3,448,962 -1.1 21,298,115 19,123,164 11.4

Air Passengers (Houston Airport System) June '11 4,588,785 4,538,752 1.1 24,437,799 24,143,096 1.2

Domestic Passengers June '11 3,808,145 3,764,338 1.2 20,118,718 19,999,674 0.6

International Passengers June '11 780,640 774,414 0.8 4,319,081 4,143,422 4.2

Landings and Takeoffs June '11 74,660 72,892 2.4 431,264 421,988 2.2

Air Freight (000 lb) June '11 76,985 74,935 2.7 460,801 431,072 6.9

Enplaned June '11 40,698 39,036 4.3 233,837 226,446 3.3

Deplaned June '11 36,287 35,899 1.1 226,964 204,626 10.9

CONSUMERS

New Car and Truck Sales (Units, Houston MSA) June '11 16,882 20,994 -19.6 125,332 122,009 2.7

Cars June '11 7,265 9,345 -22.3 55,213 55,813 -1.1

Trucks, SUVs and Commercials June '11 9,617 11,649 -17.4 70,119 66,196 5.9

Total Retail Sales ($000,000, Houston MSA, NAICS Basis) 4Q10 27,634 26,953 2.5 94,866 88,070 7.7Consumer Pr ice Index for All Urban Consumers ('82-'84=100)

Houston-Galveston-Brazoria CMSA June '11 201.309 194.734 3.4 197.209 * 192.468 * 2.5

United States June '11 225.722 217.965 3.6 220.968 * 216.735 * 2.0

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 * -4.8

POSTINGS AND FORECLOSURES

Postings (Harris County) July '11 3,138 4,092 -23.3 26,267 26,947 -2.5

Foreclosures (Harris County) July '11 782 1,031 -24.2 5,982 7,839 -23.7

YEAR-TO-DATE

TOTAL OR AVERAGE*MONTHLY DATA


15/15


August 2011 2011 Greater Houston Partnership

SourcesRig Count Baker Hughes IncorporatedSpot WTI, Spot Natural Gas U.S. Energy Information AgencyHouston Purchasing Managers National Association ofIndex Purchasing Management

Houston, Inc.Electricity CenterPoint EnergyBuilding Construction Contracts McGraw-Hill ConstructionCity of Houston Building Permits Building Permit Department, City

of HoustonMLS Data Houston Association of RealtorsEmployment, Unemployment Texas Workforce Commission

Port Shipments Port of Houston Authority Aviation Aviation Department, City of

HoustonCar and Truck Sales TexAuto Facts Report,InfoNation,

Inc., Sugar Land TXRetail Sales Consumer Price Index U.S. Bureau of Labor StatisticsHotels PKF Consulting/Hospitality Asset

Advisors InternationalPostings, Foreclosures Foreclosure Information & Listing

Service

houston economic update august 2011

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