houston economic update - february 2013

7/29/2019 Houston Economic Update - February 2013

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February 2013 2013, Greater Houston Partnership Page 1

A publication of the Greater Houston Partnership Volume 22, Number 2 February2013

A Three-Peat for Houston 12 marked the third consecutive year in which Houstonled the state in job growth. Houston, with 23.7 percent of the states population, ac-counted for 31.8 percent of the states job growth last year. The 10-county metro areaadded 84,500 jobs, a 3.2 percent increase over the previous year. GHPs official em-ployment forecast called for the region to create 84,600 net new jobs in 12. Growth inthe region fell short of the GHP forecast by only 100 jobs, essentially a rounding error inan economy with 2.7 million in total nonfarm payroll employment.

Texas Metro Areas Ranked by Total Jobs CreatedDecember Employment Annual Change

Metro Area '12 '11 Nominal %

Houston-Sugar Land-Baytown 2,731,000 2,646,500 84,500 3.2

Dallas-Fort Worth-Arlington 3,040,500 2,961,300 79,200 2.7

Austin-Round Rock-San Marcos 833,900 799,300 34,600 4.3

San Antonio-New Braunfels 878,600 856,600 22,000 2.6

El Paso 287,800 284,300 3,500 1.2

Corpus Christi 187,500 184,900 2,600 1.4

Odessa 71,300 68,900 2,400 3.5

Waco 107,800 105,400 2,400 2.3McAllen-Edinburg-Mission 235,100 232,900 2,200 0.9

Midland 78,100 76,000 2,100 2.8

Wichita Falls 60,100 58,000 2,100 3.6

Beaumont-Port Arthur 159,500 157,500 2,000 1.3

Killeen-Temple-Fort Hood 131,600 129,700 1,900 1.5

Amarillo 115,600 113,900 1,700 1.5

Texarkana 60,200 58,500 1,700 2.9

Tyler 98,500 96,800 1,700 1.8

Abilene 66,700 65,100 1,600 2.5

Laredo 96,700 95,200 1,500 1.6

Victoria 52,100 50,900 1,200 2.4

San Angelo 47,700 46,700 1,000 2.1

Longview 99,600 98,700 900 0.9

College Station-Bryan 97,600 96,900 700 0.7

Sherman-Denison 43,600 44,000 -400 -0.9

Lubbock 130,200 132,000 -1,800 -1.4

Brownsville-Harlingen 125,600 130,000 -4,400 -3.4

State of Texas 10,972,800 10,707,300 265,500 2.5Source: Texas Workforce Commission


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HOUSTONTHE ECONOMY AT A GLANCE


Data sets for the full year are now available for most sectors. This issue of Glance re-views them.

Going, Going, Gone Houston realtors sold 74,682 homes in12, a 17.4 percent increase over the 63,606 sold in 11, reports

the Houston Association of REALTORS

(HAR). Last yearwas the fourth best year on record. That performance shouldbe viewed in the proper context. Subprime lending fueled salesin the three best years on record, so last years volumesustained by solid fundamentalswas truly a milestone. Fivefactors drove those salesjob growth, household incomegrowth, low interest rates, pent-up demand, and growing con-sumer confidence.

The Texas Workforce Commission reports the Houston re-

gion gained more than 250,000 net new jobs since the bot-tom of the recession, giving many would-be homeownersthe wherewithal to purchase a house, condo or townhome.

The U.S. Census Bureau reports that between 09 and 11the number of households with annual incomes of $75,000or greater grew by more than 48,000. As a rule a thumb, ahousehold can afford a home worth two to three times itsannual income. The market for homes in Houston priced at or above $150,000 hasbeen the strongest. When data becomes available for 12, another 16,000 to 20,000 lo-

cal households will most likely be above the $75,000 threshold.

In 10 (the year Houston began to emerge from the recession), local realtors sold61,005 homes, the fewest since 02, according to HAR. Houston also had one millionfewer residents in 02. Clearly, Houstonians had postponed buying homes during therecession until they felt more confident about their economic prospects.

The cost of borrowing has gone down. In August 08, the typical interest on a 30-year,fixed rate conventional mortgage was 6.48 percent, according to data compiled by theFederal Reserve Bank of St. Louis. As of December 12, the rate was 3.35 percent.

The strong performance of Houstons economy over the past three years has boostedHoustonians confidence. History will show that Houston was the first of the majorU.S. metro areas to recover from the recession.1

1 Houston returned to its pre-recession employment peak in November 11. Of the nations 20 most populous metro areas, onlyWashington, D.C. and Dallas-Fort Worth have returned to their previous peaks, and they did so after Houston.

Metro HoustonHome Sales*

Year Sales'12 74,682

'11 63,606

'10 61,005

'09 63,801

'08 69,336

'07 83,736

'06 87,799

'05 79,012

'04 72,183

'03 64,600

'02 58,914

* Includes houses, duplexes,townhomes, condominiums

Source: Houston Associationof REALTORS


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The national media have noted Houstons strong performance as well.

In July 12, Forbes rated Houston number one among Americas Coolest Cities toLive. Forbes based the rankings on the number of entertainment options per capita,recreational opportunities, number of pro and college sports teams, number of restau-

rants and bars per capita, cultural composition, median age, net migration in 11 andunemployment rates.

In March 12, Site Selection ranked Houston the top metro for new and expanded cor-porate facilities. The ranking was based on the 195 projects that GHP identified andsubmitted to publishers.2

In January 12, Business Insiderranked Houston number one among U.S. cities withthe Fastest-Growing Wages in America. The organizations PayScale Index trackshow many times private sector wages have changed since 06.

Two more items of note. First, the sale of foreclosed homes no longer has a significantimpact on the market. In January 09, one in every three homes sold through HARs Mul-tiple Listing Service was a foreclosure. By December 12, foreclosures accounted for onein seven sales. Second, supply remains tight. Houston has 3.7 months of available inven-tory, i.e., the number of months it would take to deplete current active inventory based onthe prior 12 months of sales activity. Six months of inventory is considered a balancedmarket. As recently as June 11, Houston had a 7.9-month inventory.

Looking ahead to 13, the GHP doesnt see any significant shifts in the above fundamen-

tals. Houston realtors should enjoy another strong year of home sales.Beep-beep, beep-beep, yeah! Auto dealers in the Houston metro area sold 325,088 ve-hicles, a 27.5 percent increase over the 254,996 sold in 11, reports TexAuto Facts, pub-lished by InfoNation, Inc. of Sugar Land. This represents the third best year in the past10. Like housing, solid fundamentalsjob growth, income growth, pent-up demand,growing consumer confidencedrove auto sales. Several factors specific to the autosdrove sales as well:

Motorists who held onto their vehicles in uncertain times finally felt comfortable trad-

ing in their clunkers for more recent models. According to R.L. Polk & Company, theglobal automotive intelligence firm, the average age of the U.S. passenger vehicle inJune 11 was 11.1 years; for a light truck, it was 10.4 years. That compares to around8.4 years for both vehicle types in the mid-90s. Granted, it is better that vehicles lastlonger now, but the aging of the fleet helps spur sales. And older cars are less likely to

2 A list of the projects which have relocated or expanded to Houston in the past three years can be purchased through the Partner-ships Publication Sales Department, 713-844-3600.


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be covered by insurance and thus more likely to be replacedrather than repaired after a collision.

Light truck sales (i.e., the sale of pickup trucks) dependheavily on the health of the local housing market. Pickup

trucks are the work horses for construction contractors.Drive by any construction site and pickups are likely to out-weigh autos by a ratio of three-to-one. The surge in construc-tion, discussed later in Glance, helped stimulate demand fornew pickups.

The inventory of used vehicles continues to dwindle, forcingmore buyers into the new car market. This trend is partlydriven by U.S. car rental companies, which had sold theirused vehicles in the domestic market, now selling their used

vehicles into overseas markets where they receive higherprofits.

Auto sales should continue to grow this year. As noted earlier,GHP foresees no significant changes to fundamentals that drovethe market in 12. The industry anticipates an increase inyounger consumers as the job market continues to improve. In addition, R.L. Polk reportsauto manufacturers plan to introduce 43 new vehicles this year and 60 redesigns of exist-ing vehicles. The new and refreshed products will draw traffic to showrooms and gener-ate an uptick in sales. And Houston remains a car-dependent metro. InfoNation antic-

ipates local auto sales should grow another six to eight percent, barring any significantnegative economic events.

Up, Up and Away! The Houston Airport System (HAS) set a record for internationalpassenger traffic in 12, handling 8.76 million international travelers, an increase of 1.5percent from 8.64 million in 11. Travel between Houston and the Asian and Africanmarkets, up 29.9 percent over 11, fueled much of the growth. Canadian traffic grew 11.4percent, Central/South American traffic grew 2.8 percent, and European traffic grew 1.6percent. Traffic between Houston and the Middle East fell 10.0 percent, and traffic be-tween Houston and Mexico decreased 3.9 percent.

Airport officials expect international traffic to continue growing as more carriers add in-ternational service from Houston. Pending government approval, direct flights to Beijingwill occur four times a week starting July 13. Travel to the Middle East is expected togrow as Turkish Airlines initiates four weekly nonstop services to Istanbul beginningApril 13. Southwest Airlines is investing $100 million at Houston Hobby Airport (HOU)and plans to begin service to Mexico and the Caribbean starting 15. Currently, one inevery six passengers flying out of Houston is travelling internationally.

Metro HoustonVehicle Sales

Year Units Sold

'12 325,088

'11 254,996'10 240,354

'09 218,710

'08 306,860

'07 358,770

'06 349,368

'05 322,068

'04 303,984

'03 319,940

'02 343,738* Includes passenger ve-hicles and light duty trucks

Source: TexAuto Facts pub-lished by InfoNation of Sug-ar Land


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Domestic traffic, which ac-counts for 82.6 percent of allpassengers, grew 0.6 percentfrom 41.39 million passengersin 11 to 41.56 million pas-

sengers in 12. Slower growthin passenger traffic and de-clines in landings and takeoffsis expected as airlines focusmore on profitability and ca-pacity discipline and less ongaining market share fromcompetitors. This discipline results in fewer seats and/or flights which has been expe-rienced to some degree in Houston and is reflected in HAS domestic passenger traffic.

The Welcome Mat is Out In January, the Association of Foreign Investors in RealEstate (AFIRE) ranked Houston as the fifth best city in the world for real estate invest-ment.3 This was no popularity contest. Their confidence is well-placed.

Last year, the Houston market absorbed 4.4 million square feet of office spacethesecond highest absorption since 06, when the market absorbed 5.4 million square feet.

Large blocks of contiguous space in showcase buildings remain hard to find. In fourbuildings representative of the best Class A space in the Central Business District717 Texas, 5 Houston Center, 1000 Main and Heritage Plazaoccupancy ranges from

97.5 to 100 percent. In three suburban buildings representative of the best Class Aspace in the submarketsWilliamsTower, 9 Greenway Plaza and Two El-dridge Placeoccupancy ranges be-tween 95.0 to 99.0 percent.

Most construction is concentrated in thethree major submarkets with some of thelowest vacancy ratesKaty/EnergyCorridor, Galleria/Uptown, and The

Woodlands. Of the 4.4 million squarefeet of office space under construction,more than half is pre-leased.

Houstons industrial market remains equal-ly strong. CBRE Research reports the in-dustrial vacancy rate fell from 5.6 percent

3 The top four cities, in order or ranking, are New York, London, San Francisco and Washington, D.C.

HOUSTON AIRPORT SYSTEM ACTIVITY

12 11 Change

Total passengers 50,329,002 50,030,744 0.6%

Domestic 41,564,457 41,393,412 0.4%

International 8,764,545 8,637,332 1.5%

Landings and Takeoffs 812,237 854,222 -4.9%

Air cargo (metric tons) 419,306 423,761 -1.1%

Source: Houston Airport System

Houston Office Market

Market Overview '11 '12

Total Absorption1 2.6 M 4.4 M

Vacancy Rate 15.5% 13.8%

Rental Rates2 $23.20 23.970

Class A Rental Rates2

CBD $35.29 $37.02

Suburban $27.34 $28.20Class A Vacancy

CBD 14.3% 9.8%

Suburban 14.1% 11.4%

1) million square feet2) $/SF/YearSource: Colliers International


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in Q4/11 to 5.1 percent in Q4/12. The market absorbed 6.4 million square feet of indus-trial space, with another 4.9 million square feet currently under construction. And leaserates, at an average of $0.53 per square foot per month, are up from $0.52 in Q4/11 and$0.48 in Q4/10.

Another First Place Finish Houston led the nation in home construction last year, bothin value of construction and units permitted. This is the third consecutive year Houstonhas led the nation. Data for the years 11 and 12:

Metro Area

New Residential Building Permits(single and multi-family units)

New Residential BuildingPermits ($ value, 000s)

11 12 % Change 11 12 % Change

Houston 31,271 43,451 38.9 4,831,152 6,921,004 43.3

Dallas 24,827 33,797 36.1 4,348,698 5,604,591 28.9

New York 21,539 26,931 25.0 3,252,738 3,722,415 14.4

Los Angeles 14,247 17,407 22.2 2,997,275 3,677,236 22.7

Washington 19,657 22,352 13.7 2,937,160 3,322,646 13.1

Atlanta 8,634 14,356 66.3 1,400,186 2,325,613 66.1

Miami 7,532 12,626 67.6 1,307,935 2,065,068 57.9

Chicago 7,593 9,425 24.1 1,514,928 1,945,994 28.5

Boston 6,139 8,902 45.0 1,327,032 1,844,109 39.0

Philadelphia 6,979 9,042 29.6 966,394 1,274,649 31.9

Source: U.S. Census Bureau, Building Permits Survey

Metrostudy reports that in 12 few homes under construction showed up as finished unitsfor sale because the homes were sold before construction was completed. In December12, there were only 2,298 speculative homes under construction and 1,097 speculativehomes finished and vacant.

Construction in general continues to rebound. More than $10.6 billion in constructioncontracts were awarded in the 10-county Houston metro area last year, up 19.2 percentfrom the $9.0 billion awarded in 11. Readers are cautioned that values for 12 are in-

complete and will be revised over coming months. Case in point: with the release of year-end data for 12, the final revision for 11 was also released. As a result, 11 tallied$534.9 million more construction activity than originally reported. The GHP expects sim-ilar revisions for 12 when the final data are released this time next year.


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Grow, Grow, Grow Over the next five years, Houston will grow faster than any othermajor metro in Texas, according to the recently released report, The Perryman EconomicForecast, Short-Term Outlook for the United States, Texas,

and Major Texas Metropolitan Statistical Areas. Perrymanstates that between 12 and 17, Houstons real gross area

product (GAP) will grow at a 5.0 percent compound an-nual rate (CAGR). The report states that the oil and gas in-dustry, while cyclical in nature, will continue to drive theregions economy. The Port of Houston and other regionalfacilities will play greater roles as global economies im-prove. Health care and technology businesses will alsodrive growth. Perryman calculates Houstons GAP at$480.6 billion in 12, or $394.5 in inflation-adjusted 05dollars. By 17, Houstons nominal GAP will exceed

$708.6 billion, or $503.6 billion in inflation-adjusted 05dollars. Perryman forecasts mining, i.e., oil and gas extrac-tion, to grow at a 7.4 percent CAGR, durable goods manufacturing at 5.3 percent, servic-es at 5.1 percent, manufacturing at 4.8 percent, wholesale and retail trade at 4.7 percent,nondurables manufacturing at 4.5 percent, transportation/warehousing at 4.4 percent,finance/insurance/real estate at 3.7 percent, construction at 3.2 percent, and governmentat 2.3 percent.

$76.5

$84.2

$64.9

$51.2

$44.3

$24.1

$23.7

$

17.3

$8.0

$109

.5

$107

.8

$82.0

$61.2

$55.6

$30.0

$26.5

$20.2

$10

.4

Mining Services Manufacturing FIRE Trade TWU Government Construction Information

Current and Projected Values of Houston MSA Gross Product

By Industry, $ Billions*

2012 2017

* Inflation-adjusted '05 dollars

TWU= Transportation, Warehousing, and Utilities; FIRE = Finance, Insurance and Real Estate

Source: The Perryman Group, Winter 2012

REAL GROSS AREAPRODUCT GROWTH

RATES, 12 17

Metro Area CAGR*

Houston 5.00%

Ft. Worth 4.77%

Austin 4.59%

Dallas 4.55%

San Antonio 4.25%

El Paso 3.89%

*Compound Annual Growth Rate

Source: The Perryman Group


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Patrick Jankowski and Jenny Philipcontributed 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 accounthereand access archived issues of Glanceavailable only to members. You can also sign-up RSS feeds to receive Houstons 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 [email protected] your name, title and phone number and your companys 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 those updates by e-mail, usually accompanied bycommentary, please email your request for Key Economic Indicators to [email protected] the same identifying information.

You may request Glanceand Indicatorsin the same email.
http://www.houston.org/GHP_Secure/LogIn/index.asp?edit=0&act=mbrshttp://www.houston.org/GHP_Secure/LogIn/index.asp?edit=0&act=mbrshttp://www.houston.org/GHP_Secure/LogIn/index.asp?edit=0&act=mbrsmailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://www.houston.org/GHP_Secure/LogIn/index.asp?edit=0&act=mbrs


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Houston Economic Indicators

A Service of the Greater Houston Partnership

Most Year % Most Year

Month Recent Earlier Change Recent Earlier Chan

ENERGY

U.S. Active Rotary Rigs Jan '13 1,756 2,003 -12.3 1,756 * 2,003 * -1

Spot Crude Oil Price ($/bbl, West Texas Intermediate) Jan '13 94.37 99.47 -5.1 94.37 * 99.47 * -

Spot Natural Gas ($/MMBtu, Henry Hub) Jan '13 3.33 2.66 25.2 3.33 * 2.66 * 2

UTILITIES AND PRODUCTION

Houston Purchasing Managers Index Dec '12 54.6 57.8 -5.5 58.9 * 60.0 * -

Nonresidential Electric Current Sales (Mwh, CNP Service Area) Dec '12 3,989,149 4,017,421 -0.7 51,188,914 51,527,823 -

CONSTRUCTION

Total Building Contracts ($, Houston MSA) Dec '12 768,785,000 794,474,000 -3.2 10,690,348,000 8,971,138,000 1

Nonresidential Dec '12 281,909,000 358,182,000 -21.3 3,689,000,000 3,647,348,000

Residential Dec '12 486,876,000 436,292,000 11.6 7,001,348,000 5,323,790,000 3

Building Permits ($, City of Houston) Dec '12 358,109,439 331,128,164 8.1 4,857,134,531 3,653,176,019 3

Nonresidential Dec '12 261,510,838 195,334,931 33.9 3,084,749,715 2,429,652,877 2

New Nonresidential Dec '12 92,005,167 64,003,147 43.8 1,268,209,156 1,021,522,318 2

Nonresidential Additions/Alterations/Conversions Dec '12 169,505,671 131,331,784 29.1 1,816,540,559 1,408,130,559 2

Residential Dec '12 96,598,601 135,793,233 -28.9 1,772,384,816 1,223,523,142 4

New Residential Dec '12 82,305,044 118,530,457 -30.6 1,528,801,469 1,010,457,924 5

Residential Additions/Alterations/Conversions Dec '12 14,293,557 17,262,776 -17.2 243,583,347 213,065,218 1

Multiple Listing Service (MLS) Activity

Closings Dec '12 6,055 5,381 12.5 74,682 63,606 1

Median Sales Price - SF Detached Dec '12 172,500 160,000 7.8 162,775 * 153,618 *

Active Listings Dec '12 33,554 42,083 -20.3 40,497 * 48,800 * -1

EMPLOYMENT (Houston-Sugar Land-Baytown M SA)

Nonfarm Payroll Employment Dec '12 2,731,000 2,646,500 3.2 2,681,883 * 2,599,064 *

Goods Producing (Natural Resources/Mining/Const/Mfg) Dec '12 522,300 492,500 6.1 509,050 * 486,242 *

Service Providing Dec '12 2,208,700 2,154,000 2.5 2,172,833 * 2,106,883 *

Unemployment Rate (%) - Not Seasonally Adjusted

Houston-Sugar Land-Baytown MSA Dec '12 6.0 7.2 6.8 * 8.1 *

Texas Dec '12 6.0 7.1 6.8 * 7.1 *

U.S. Dec '12 7.6 8.3 8.1 * 8.3 *

FOREIGN TRADE (Houston-Galveston Customs District)

Port of Houston Authority Shipments (Short Tons) Dec '12 3,472,829 3,515,641 -1.2 43,808,039 42,476,178

Air Passengers (Houston Airport System) Dec '12 4,156,790 4,311,108 -3.6 50,329,002 50,030,744

Domestic Passengers Dec '12 3,410,635 3,542,815 -3.7 41,564,457 41,393,412

International Passengers Dec '12 746,155 768,293 -2.9 8,764,545 8,637,332

Landings and Takeoffs Dec '12 63,405 69,401 -8.6 812,237 854,222 -

Air Freight (metric tons) Dec '12 35,182 36,955 -4.8 419,306 423,761 -

Enplaned Dec '12 17,250 18,439 -6.4 216,396 217,302 -

Deplaned Dec '12 17,932 18,516 -3.2 202,910 206,459 -

CONSUMERS

New Car and Truck Sales (Units, Houston MSA) Dec '12 25,456 19,986 27.4 325,088 254,996 2

Cars Dec '12 10,800 8,099 33.3 143,061 107,552 3

Trucks, SUVs and Commercials Dec '12 14,656 11,887 23.3 182,027 147,444 2

Total Retail Sales ($000,000, Houston MSA, NAICS Basis) 2Q12 25,809 24,595 4.9 50,442 46,984

Consumer Pr ice Index for All Urban Consumers ('82-'84=100)

Houston-Galveston-Brazoria CMSA Dec '12 202.477 200.477 1.0 204.214 * 200.496 *

United States Dec '12 229.601 225.672 1.7 229.594 * 224.939 *Hotel Performance (Harris County)

Occupancy (%) 3Q12 64.3 57.9 66.5 * 60.3 *

Average Room Rate ($) 3Q12 90.09 85.94 4.8 94.22 * 90.85 *

Revenue Per Available Room ($) 3Q12 57.90 49.76 16.4 62.68 * 54.86 * 1

POSTINGS AND FORECLOSURES

Postings (Harris County) Dec '12 2,061 4,338 -52.5 34,730 43,832 -2

Foreclosures (Harris County) Dec '12 678 1,169 -42.0 9,993 11,092 -

YEAR-TO-DATE TOTAL or

YTD AVERAGE*MONTHLY DATA


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

Houston, Inc.Electricity CenterPoint EnergyBuilding Construction Contracts McGraw-Hill Construction

City of Houston Building Permits Building Permit Department, Cityof HoustonMLS Data Houston Association of RealtorsEmployment, Unemployment Texas Workforce Commission

Port Shipments Port of Houston AuthorityAviation Aviation Department, City of

HoustonCar and Truck Sales TexAuto Facts Report,

InfoNation, Inc., Sugar Land TXRetail Sales Texas Comptrollers OfficeConsumer Price Index U.S. Bureau of Labor Statistics

Hotels PKF Consulting/Hospitality AssetAdvisors InternationalPostings, Foreclosures Foreclosure Information & Listing

Service


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

Dec '12 Nov '12 Dec '11 Nov '12 Dec '11 Nov '12 Dec '1

Total Nonfarm Payroll Jobs 2,731.0 2,725.8 2,646.5 5.2 84.5 0.2 3.2

Total Private 2,357.1 2,350.4 2,270.6 6.7 86.5 0.3 3.8

Goods Producing 522.3 519.7 492.5 2.6 29.8 0.5 6.1

Service Providing 2,208.7 2,206.1 2,154.0 2.6 54.7 0.1 2.5

Private Service Providing 1,834.8 1,830.7 1,778.1 4.1 56.7 0.2 3.2

Mining and Logging 97.3 96.5 92.8 0.8 4.5 0.8 4.Oil & Gas Extraction 53.8 53.4 50.8 0.4 3.0 0.7 5.Support Activities for Mining 41.2 40.7 39.6 0.5 1.6 1.2 4.

Construction 186.5 185.7 168.9 0.8 17.6 0.4 10.

Manufacturing 238.5 237.5 230.8 1.0 7.7 0.4 3.Durable Goods Manufacturing 161.6 160.8 153.0 0.8 8.6 0.5 5.Nondurable Goods Manufacturing 76.9 76.7 77.8 0.2 -0.9 0.3 -1.

Wholesale Trade 140.1 141.7 137.0 -1.6 3.1 -1.1 2.

Retail Trade 293.6 289.0 281.7 4.6 11.9 1.6 4.

Transportation, Warehousing and Utilities 128.2 127.3 124.8 0.9 3.4 0.7 2.Utilities 17.3 17.3 16.5 0.0 0.8 0.0 4.

Air Transportation 19.1 19.2 19.8 -0.1 -0.7 -0.5 -3.Truck Transportation 23.5 23.6 22.5 -0.1 1.0 -0.4 4.Pipeline Transportation 11.0 10.8 10.7 0.2 0.3 1.9 2.

Information 31.3 31.4 31.5 -0.1 -0.2 -0.3 -0.Telecommunications 15.7 15.6 15.8 0.1 -0.1 0.6 -0.

Finance & Insurance 90.9 91.5 91.5 -0.6 -0.6 -0.7 -0.

Real Estate & Rental and Leasing 48.3 48.6 48.8 -0.3 -0.5 -0.6 -1.

Professional & Business Services 387.3 385.9 390.2 1.4 -2.9 0.4 -0.Professional, Scientific & Technical Services 184.7 183.2 189.3 1.5 -4.6 0.8 -2.Legal Services 23.6 23.3 23.4 0.3 0.2 1.3 0.9

Accounting, Tax Preparation, Bookkeeping 17.5 17.0 18.2 0.5 -0.7 2.9 -3.8

Architectural, Engineering & Related Services 59.5 59.9 63.2 -0.4 -3.7 -0.7 -5.9

Computer Systems Design & Related Services 27.0 26.8 25.8 0.2 1.2 0.7 4.7

Admin & Support/Waste Mgt & Remediation 181.2 181.7 179.6 -0.5 1.6 -0.3 0.Administrative & Support Services 170.6 171.7 170.1 -1.1 0.5 -0.6 0.3

Employment Services 79.5 80.2 72.9 -0.7 6.6 -0.9 9.

Educational Services 44.1 44.5 44.0 -0.4 0.1 -0.9 0.

Health Care & Social Assistance 305.7 305.5 287.0 0.2 18.7 0.1 6.

Arts, Entertainment & Recreation 26.4 27.6 25.3 -1.2 1.1 -4.3 4.

Accommodation & Food Services 238.0 236.7 220.6 1.3 17.4 0.5 7.

Other Services 100.9 101.0 95.7 -0.1 5.2 -0.1 5.

Government 373.9 375.4 375.9 -1.5 -2.0 -0.4 -0.Federal Government 27.5 27.2 27.5 0.3 0.0 1.1 0.State Government 73.2 73.9 72.4 -0.7 0.8 -0.9 1.State Government Educational Services 39.5 40.1 39.4 -0.6 0.1 -1.5 0.3

Local Government 273.2 274.3 276.0 -1.1 -2.8 -0.4 -1.Local Government Educational Services 193.1 193.8 192.7 -0.7 0.4 -0.4 0.2

SOURCE: Texas Workforce Com mission


12/14



Source: National Association for Purchasing Management - Houston, Inc.

Source: Texas Workforce Commission

30

35

40

45

50

55

60

65

70

Jan-02 Jan-03 Jan-04 Jan-05 J an-06 Jan-07 J an-08 Jan-09 Jan-10 Jan-11 Jan-12 J an-13

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

1,950

2,000

2,050

2,100

2,150

2,200

2,250

2,300

2,350

2,400

2,450

2,500

2,550

2,600

2,650

2,700

2,750

2,800

Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13

12-M

ONTHCHANGE(000)

NONF

ARM

PAYROLLEMPLOYMENT(000)

HOUSTON MSA EMPLOYMENT2002-2012

12-MONTH CHANGE JOBS


13/14





1,600

1,650

1,700

1,750

1,800

1,850

1,900

1,950

2,000

2,050

2,100

2,150

2,200

2,250

430

440

450

460

470

480

490

500

510

520

530

540

550

Jan-02 Jan-03 J an-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 J an-13

SERVICE-PROVIDING

(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 J an-04 Jan-05 J an-06 Jan-07 Jan-08 J an-09 Jan-10 Jan-11 J an-12 Jan-13

PERCENTOFLABORFORCE

UNEMPLOYMENT RATEHOUSTON & U.S. 2002-2012

HOUSTON U.S.


14/14



Source:U.S. Energy Information Administration

Source: U.S. Bureau of Labor Statistics

0

4

8

12

16

20

24

28

0

20

40

60

80

100

120

140

Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13

HENRYHUBNATURALGAS($/MMBTU)

WESTTEXASINTERMEDIATE($/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%

J an-02 J an-03 Jan-04 Jan-05 J an-06 J an-07 Jan-08 Jan-09 J an-10 Jan-11 Jan-12 J an-13

INFLATION: 12-MONTH CHANGE2002-2012

HOUSTON CPI-U U.S. CPI-U

houston economic update - february 2013

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