houston economic update september 2011

8/4/2019 Houston Economic Update September 2011

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August 2011 2011, Greater Houston Partnership

A publication of the Greater Houston Partnership Volume 20, Number 9September 2011

The good news about the economy is all local to grow. Job growth for the most part has been in high-paying industries.Traffic through the Houston-Galveston Customs District is

pace. Drilling activity is approaching the pre-recession peak. Oil prices remainat a level that encourages exploration. Peak season traffic through the HoustonAirport System has grown the past two years. Vehicle sales continue to recover.

And although homes sales remain weak, the Houston market is outperformingthe national market. Bottom line: Houston continues to recover while the rest ofthe nation struggles.

Employment Continues to Improve The 10-county Houston-SugarLand-Baytown Metropolitan Statistical Area gained 65,100 jobs, growingeTexas Workforce Commission (TWC). Several items stand out in the data:

This was the strongest 12-

metro areasSan Antonio-New Braunfels (2.4 percent), El Paso (2.3

percent), Dallas-Fort Worth-Arlington (2.3 percent), and Austin-RoundRock-San Marcos (1.8 percent).

Over the past 12 months, the private sector has created 67,900 jobs for anannual growth rate of 3.1 percent, more than offsetting losses in the

public sector over the same time.

sector has created 125,200 jobs, recouping 75.7 percent of all private

sector jobs lost during the recession.

The table on page 9 presents a breakdown of job growth by sector over thepast 12 months.

Wages and Job Growth recovery continues to attract the attention of media, businesses and jobseekers around the nation. An often cited statistic is that roughly a fifth of all

jobs created in the recovery were created in Texas. Also cited: one


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HOUSTONTHE ECONOMY AT A GLANCE

September 2011 2011, Greater Houston Partnership Page 2

out of every four jobs created in Texas was created in Houston. To put thatin a broader context, Houston is responsible for one out of every 20 jobscreated in the U.S.1 during the recovery.

Houston Texas U. S.

Jobs Added 99,800 384,900 1,909,000

Share of Texas Jobs 25.93% - -

Share of U.S. Jobs 5.23% 20.16% -

Source: U.S. Bureau of Labor Statistics, Current Employment Statistics

Note: Seasonally adjusted employment numbers

While the quantity of local job growth is impressive, it is also important to

gauge the quality of these jobs. Specifically, did the growth occur in high-wage, mid-wage or low-wage industries?

The National Employment Law Project (NELP), a research and advocacygroup for employment rights of lower-wage workers, provides a reasonabledefinition for low-wage, mid-wage or high-wage jobs:

Low-wage occupations: $7.51-$13.52 per hour, or $300-$540 per weekMid-wage occupations: $13.53 to $20.66 per hour, or $541-$824 per week

High-wage occupations: $20.67 per hour, or $825+ per week

jobgrowth has occurred in low, medium or high-paying industries. From the Quarterly Census of

Employment and Wages), seven sectors have added 59,471 jobs:

Professional and Business Services Education and Health Services Trade, Transportation and Utilities Leisure and Hospitality Natural Resources and Mining Manufacturing Other Services

1 Because the national estimate, the individual state estimates, and the individual metro area estimates are independentwhich means, for example, that the sum of the state estimates doesn't equal the national estimatecomparisons of estimatesfor different levels of geography are approximations at best.


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Four sectors have reported job losses during the same period:

Construction Public Administration Information

Financial Activities

Houston MSA Employment and Weekly Wages by Industry

Industry

AverageWeeklyWage

Low,Mid,HighWage

Employment

JobsAdded/

Lost

Shareof JobGrowth

Construction $1,148 H 176,498 172,665 -3,833 -

Public Administration $1,099 H 74,354 72,015 -2,339 -

Information $1,306 H 34,069 33,323 -746 -Financial Activities $1,763 H 134,344 134,255 -89 -

Other Services $632 M 74,506 75,678 1,172 2.0%

Manufacturing $1,626 H 215,755 221,395 5,640 9.5%

Natural Resources and Mining $3,970 H 80,570 86,621 6,051 10.2%

Leisure and Hospitality $369 L 230,090 236,734 6,644 11.2%

Trade, Transportation and Utilities $1,073 H 524,518 535,371 10,853 18.2%

Education and Health Services $839 H 549,461 560,629 11,168 18.8%

Professional and Business Services $1,400 H 350,996 368,939 17,943 30.2%

Total or Average $1,384 2,445,161 2,497,625 52,4642

Source: Texas Workforce Commission, Quarterly Census of Employment and Wages

As seen in the table, five of the industries creating jobs tend to be high-paying(professional and business services, education and health services, trade,transportation and utilities, natural resources and mining, and manufacturing),one tends to pay a mid-level wage (other services) and one is a low-wage

industry (leisure and hospitality). The high-wage industries contributed 86.9percent of the new jobs crethe first quarter of The mid-wage industry constituted 2.0 percent and thelow-wage industry represented 11.2 percent. Not only is Houston responsible fora significant share of U.S. job creation, the bulk of those jobs have been createdin high-wage industries.

2 The number of jobs added differs between the Current Employment Statistics and the Quarterly Census of Employment andWages. For more information on the differences between the surveys, clickhere.


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The Houston-Galveston Customs District28.5 percent from the $100.9 billion handled during the same period lastyear.

Exports3

totaled $57.3 billion through the first six months of 11, up 29.1 percent from $44.4 billion over the same period last year. Twenty-fivecommodities accounted for 96.2 percent of all exports through the district.1 is up in 24 of them. Exports of fuel,organic chemicals and grains accounted for two-thirds of the increase.

Imports4 totaled $72.4 billion, up 28.1 percent from $56.5 billion over thesame period last year. Twenty-five commodities accounted for 96.6 percent1is up in 24 of them. Shipments of fuel accounted for a little over half the

increase.

Rig Count Soars The Baker Hughes count of active domestic rotary rigsbegan the year at 1,700 and finished August at 1,975, only 56 rigs shy of theprevious peak reached

Three years ago, much of the North American drilling activity was gas-directed. Firms that had hedged (i.e. locked in) prices at $6 per millionBritish thermal units (MMBtu) drove up the rig count as they sought to findand produce as much natural gas as possible. But those hedges have since

expired and natural gas prices have fallen, averaging $4.25 per MMBtu overthe past two years. The number of rigs looking for natural gas peaked at-directed rig count now stands at 898, well

below the previous peak.

The price of oil, however, has trended upward over the past two years. TheFriday closing spot market price for West Texas Intermediate (WTI)theU.S. benchmark for light, sweet crudehas averaged $96.39 since January.Though the price spiked during the recent Arab unrest, then fell on worriesof a weakening U.S. economy, it has not sunk below $82 per barrel, well

3 The top 25 exports include fuel, industrial machinery, organic chemicals, plastics, cereals, electric machinery,vehicles and parts, miscellaneous chemicals, scientific equipment, cotton, articles of iron or steel, rubber, aircraftand parts, inorganic chemicals, beverages, oil seeds, animal and vegetable fats, iron and steel, tools, meat, soap andwaxes, pharmaceuticals, perfumes and cosmetics, paper products and miscellaneous edible preparations.

4 The top 25 imports include fuel, industrial machinery, articles of iron or steel, electric machinery, organicchemicals, vehicles and parts, iron and steel, plastics, miscellaneous chemicals, beverages, scientific equipment,inorganic chemicals, rubber, furniture, aluminum products, copper products, gums and resins, ceramic products,textiles; coffee, tea and spices, fruit and nuts, perfumes and cosmetics, toys, games and sport equipment;pharmaceuticals, and special items not classified elsewhere.


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above the recession low of $33.17 reached in December08. During the gas-drilling boom, the oil-directed rig count fell to 179 firms found it more lucrative to search for natural gas. As oil prices rose, sodid the oil-directed drilling activity. As of late August, 1,069 rigs werelooking for oil in North Americanearly six times as many as two years ago.

There is no indication that oil-directed drilling activity will let up in the nearfuture. The U.S. Energy Information Administration (EIA) expects WTI toaverage $95.71 this year and $101.00 next. Wells Fargo, Morgan Stanley,the World Bank and the International Monetary Fund expect world oil pricesto range between $97 and $105 per barrel next year.

Air Traffic GrowthThe Houston Airport System (HAS) handled 4.87million passengers in July, up 2.7 percent from the 4.74 million handled inJuly last year. Domestic passenger traffic rose 2.7 percent from 3.85 million

this past July. International passenger traffic grew

From June to July, domestic passengers grew 3.4 percent and internationalpassengers increased by 17.4 percent. During the peak season summer travelof May, June and July, domestic and international traffic this year

Growth in Peak Season Travel

09 10 11

May 4,010,889 4,197,620 4,361,542June 4,465,449 4,538,752 4,588,785

July 4,723,973 4,740,864 4,867,298

Total 13,202,320 13,479,246 13,819,636

Change fromPrevious Year

- 2.10% 2.53%

Source: Houston Airport System

Freight traffic remains strong within the HAS, which moved 77.7 millionup 1.1 percent from 736,000 pounds. This was

the first month-to-

HAS announced Ellington Airport will become Ellington InternationalAirport as it undergoes an expansion to service noncommercial internationalflights. A new terminal, tower and inspection station will be constructedover the next 12 to 18 months and is estimated to cost $10 million.Additional projects at Ellington include a $50 million to $57 million facilityfor the U.S. Coast Guard and a $70 million to $80 million cargo facility for


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an unspecified developer. As many as 600 jobs will be created from all ofthe projects.

Car and Truck Sales Show ImprovementAuto dealers in the Houston

the latest TexAuto Facts Report, published by InfoNation, Inc. of SugarLand. This represents an increase of 34.6 percent from the 17,810 vehiclesreached $32,055, the highest since Jan

Steve McDowell from InfoN Houston region recovered sharply from the low sales volume of June in spiteof consumer perceptions of continued limited inventory for some Japanese

brands and the absence of manufacturer incentives.

For the 1vehicles, a 5.1 percent increase over the 237,788 vehicles sold in the prior12months. Since hitting bottom at 218,710 vehicles in the 12 months ending and now stand 14.2 percent abovetheir recession low. However, significant month-to-month fluctuations insales levels may reflect consumer uncertainty regarding the U.S. economyand the job market.

Housing Sales Remain Weak The Houston Association of Realtors

reports.However, it is too soon to determine whether the increase reflects animproving housing market or a comparison to a bad month last year. Lastin June to qualify for the first-time homebuyer tax credit. The credit pulledsales forward, resulting in weaker sales during the remainder of the year. Itwill be several months before the effects of the credit work their waythrough the system and meaningful year-to-year comparisons are possible.

that 36,800 homes were sold in Houston through the first seven months ofthis year, a 1.7 percent decline from the 37,455 homes sold over the same

period last year. In comparison, the nation has seen a 12.7 percent drop.With mortgage rates at their lowest level in 30 years, the nation needs to seean improvement in the job market before it sees an improvement in thehousing market.


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With the exception of this January, over the past 12 months the medianhome price in Houston has ranged between $148,000 and $161,000,averaging $153,000. Foreclosure sales continue to exert pressure on home

prices, accounting for one in five homes sold in July. The median price of aforeclosure home was $84,000 compared to $185,000 for a traditional home

sale.

The number of available properties, or active listings, at the end of Julydeclined to 50,022, down 9.5 percent from July 10. The inventory of single-family homes dipped to 7.6 months compared to 7.7 months one year earlier.This means that it would take 7.6 months to sell all the single-family homeson the market, based on sales activity over the past year. The figure issignificantly better than the national single-family inventory of 9.5 months.

Broken out by segment, July sales of homes priced below $80,000 rose 15.8 percent compared to July of last year; sales of homes in the $80,000-$150,000 range climbed 17.7 percent; sales of homes between $150,000 and$250,000 increased 18.5 percent; sales of homes ranging from $250,000 to$500,000 advanced 13.7 percent; and sales of homes that make up the luxurymarketpriced from $500,000 upsoared 25.7 percent.

Single-family home rentals jumped 21.6 percent compared to one yearearlier and year-over-year townhouse/condominium rentals rose 7.7 percent.The demand is fed by consumers relocating to Houston for work and by

former homeowners who have now become renters and need a place to stay.

SUMMARY OF HOUSTON SALES ACTIVITY

JULY11 JULY10 % CHANGE

Total sales 5,962 5,091 17.1%

Total dollar volume $1.27 billion $1.07 billion 18.7%

Total listings 50,022 55,247 -9.5%

Total pending sales 3,659 3,267 12.0%

Single-family sales 5,034 4,313 16.7%

Average priceSingle-family home

$224,110 $222,534 0.7%

Median priceSingle-family home

$160,000 $159,490 0.3%

Inventory5

7.6 months 7.7 months -1.8%

Source: Houston Association of Realtors

5 Months of inventory estimate the number of months it will take to deplete current active inventory of single-family homesbased on the prior 12 months sales activity. This figure is representative of the single -family homes market.


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Patrick Jankowski andJenny Hsu contributed to this issue ofHoustonThe Economy at a Glance.

If you were unable to hear my presentation in August, youwill have a second chance to do so. The presentation, Getting Back to

Norm,looks at what is ll recognize itwhen we get there. The presentation is scheduled for Friday, September 16,at noon in the GHP Board Room. The $30 fee to attend covers the cost of the

box lunch that we will serve. If you are interested in attending, you can signup at the Events section of the GHP website or click here. I hope to see youSeptember 16th. Thanks.

Patrick Jankowski

VP Research, GHP

STAY UP TO DATE!

Are you a Partnership Member? If so, log-in to your account here and accessarchived issues ofGlance available only to members. You can also sign-up forRSS feeds to .

If you are a non-member and would like to receive this electronic publication on the first workingday of each month, please e-mail your request for Economy at a Glance [email protected]. Include your name, title and phone number and yourand address. For information about joining the Greater Houston Partnership and gaining accessto this powerful resource, call Member Services at 713-844-3683.

The foregoing table is updated whenever any data change typically, 11 or so times permonth. If you would like to receive those updates by e-mail, usually accompanied bycommentary, please e-mail your request for Key Economic Indicators [email protected] the same identifying information.

You may request Glance and Indicators in the same e-mail.


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

July '11 June '11 July '10 June '11 July '10 June '11 July '10

Total Nonfarm Payroll Jobs 2,591.2 2,600.4 2,526.1 -9.2 65.1 -0.4 2.6

Total Private 2,228.3 2,223.2 2,160.4 5.1 67.9 0.2 3.1

Goods Producing 500.1 497.4 472.2 2.7 27.9 0.5 5.9

Service Providing 2,091.1 2,103.0 2,053.9 -11.9 37.2 -0.6 1.8

Private Service Providing 1,728.2 1,725.8 1,688.2 2.4 40.0 0.1 2.4

Mining and Logging 91.0 89.7 81.6 1.3 9.4 1.4 11.5

Oil & Gas Extraction 48.9 48.5 46.2 0.4 2.7 0.8 5.8Support Activities for Mining 39.0 38.5 34.3 0.5 4.7 1.3 13.7

Construction 179.6 179.9 172.4 -0.3 7.2 -0.2 4.2

Manufacturing 229.5 227.8 218.2 1.7 11.3 0.7 5.2

Durable Goods Manufacturing 149.8 148.9 140.6 0.9 9.2 0.6 6.5

Nondurable Goods Manufacturing 79.7 78.9 77.6 0.8 2.1 1.0 2.7

Wholesale Trade 137.7 136.1 132.1 1.6 5.6 1.2 4.2

Retail Trade 266.8 268.5 260.9 -1.7 5.9 -0.6 2.3

Transportation, Warehousing and Utilities 123.5 122.8 123.0 0.7 0.5 0.6 0.4

Utilities 16.6 16.4 16.2 0.2 0.4 1.2 2.5Air Transportation 24.1 24.1 23.9 0.0 0.2 0.0 0.8

Truck Transportation 21.3 21.1 20.5 0.2 0.8 0.9 3.9Pipeline Transportation 10.4 10.4 10.4 0.0 0.0 0.0 0.0

Balance, incl Warehousing, Water & Rail Transport 51.1 50.8 52.0 0.3 -0.9 0.6 -1.7

Information 29.9 30.0 32.0 -0.1 -2.1 -0.3 -6.6

Telecommunications 15.1 15.2 16.2 -0.1 -1.1 -0.7 -6.8

Finance & Insurance 87.2 87.0 87.0 0.2 0.2 0.2 0.2

Real Estate & Rental and Leasing 48.1 48.1 48.9 0.0 -0.8 0.0 -1.6

Professional & Business Services 376.5 378.3 365.0 -1.8 11.5 -0.5 3.2Professional, Scientific & Technical Services 177.9 178.4 176.3 -0.5 1.6 -0.3 0.9Legal Services 23.1 23.1 23.3 0.0 -0.2 0.0 -0.9

Accounting, Tax Preparation, Bookkeeping 17.1 17.3 16.7 -0.2 0.4 -1.2 2.4Architectural, Engineering & Related Services 57.9 57.4 59.6 0.5 -1.7 0.9 -2.9

Computer Systems Design & Related Services 25.7 25.8 24.7 -0.1 1.0 -0.4 4.0

Admin & Support/Waste Mgt & Remediation 180.1 181.3 169.1 -1.2 11.0 -0.7 6.5Administrative & Support Services 169.2 170.6 161.2 -1.4 8.0 -0.8 5.0

Employment Services 61.6 61.4 59.3 0.2 2.3 0.3 3.9

Educational Services 41.9 42.6 41.6 -0.7 0.3 -1.6 0.7

Health Care & Social Assistance 270.4 267.5 266.3 2.9 4.1 1.1 1.5

Arts, Entertainment & Recreation 29.7 30.1 30.0 -0.4 -0.3 -1.3 -1.0

Accommodation & Food Services 218.7 218.6 208.6 0.1 10.1 0.0 4.8

Other Services 97.8 96.2 92.8 1.6 5.0 1.7 5.4

Government 362.9 377.2 365.7 -14.3 -2.8 -3.8 -0.8Federal Government 27.8 27.5 32.0 0.3 -4.2 1.1 -13.1

State Government 67.8 68.4 69.8 -0.6 -2.0 -0.9 -2.9State Government Educational Services 34.7 35.4 36.0 -0.7 -1.3 -2.0 -3.6

Local Government 267.3 281.3 263.9 -14.0 3.4 -5.0 1.3Local Government Educational Services 178.2 193.1 177.9 -14.9 0.3 -7.7 0.2

SOURCE: Texas Workforce Commission


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Source: Institute for Supply Management-Houston

Source: Texas Workforce Commission

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


1

2-MONTHCHANGE(000)

NONFARM

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


PER

CENTOFLABORFORCE

UNEMPLOYMENT RATEHOUSTON & U.S. 2002-2012

HOUSTON U.S.


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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


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%


INFLATION: 12-MONTH CHANGE

2002-2012

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 Cha

ENERGY

U.S. Active Rotary Rigs Aug '11 1,957 1,656 18.2 1,812 * 1,477 * 2

Spot Crude Oil Price ($/bbl, West Texas Intermediate) Aug '11 84.95 76.32 11.3 95.95 * 77.29 * 2Spot Natural Gas ($/MMBtu, Henry Hub) Aug '11 4.03 4.24 -5.0 4.22 * 4.63 *

UTILITIES AND PRODUCTION

Houston Purchasing Managers Index July '11 58.3 52.4 11.3 59.8 * 55.3 *

Nonresidential Electric Current Sales (Mwh, CNP Service Area) June '11 4,534,316 4,334,779 4.6 24,553,426 23,880,000

CONSTRUCTION

Total Building Contracts ($, Houston MSA) June '11 800,853,000 875,695,000 -8.5 4,121,199,000 4,646,771,000 -1

Nonresidential June '11 375,562,000 428,874,000 -12.4 1,722,850,000 1,830,758,000

Residential June '11 425,291,000 446,821,000 -4.8 2,398,349,000 2,816,013,000 -1

Building Permits ($, City of Houston) July '11 344,953,415 264,381,291 30.5 1,973,645,876 1,865,925,073

Nonresidential July '11 246,192,930 200,339,600 22.9 1,336,452,959 1,275,567,838

New Nonresidential July '11 128,842,892 80,418,076 60.2 488,203,254 428,003,202 1

Nonresidential Additions/Alterations/Conversions July '11 117,350,038 119,921,524 -2.1 848,249,705 847,564,636

Residential July '11 98,760,485 64,041,691 54.2 637,192,917 590,357,235

New Residential July '11 81,470,459 48,077,428 69.5 518,969,392 440,223,475 1

Residential Additions/Alterations/Conversions July '11 17,290,026 15,964,263 8.3 118,223,525 150,133,760 -2

Multiple Listing Service (MLS) Activity

Closings July '11 5,962 5,091 17.1 36,800 37,455

Median Sales Price - SF Detached July '11 159,490 160,000 -0.3 152,407 * 152,073 *

Active Listings July '11 50,022 55,247 -9.5 50,738 * 50,019 * 1

EMPLOYMENT (Houston-Sugar Land-Baytown MSA)

Nonfarm Payroll Employment July '11 2,591,200 2,526,100 2.6 2,567,000 * 2,515,200 *

Goods Producing (Natural Resources/Mining/Const/Mfg) July '11 500,100 472,200 5.9 484,500 * 467,100 *

Service Providing July '11 2,091,100 2,053,900 1.8 2,082,500 * 2,048,100 *

Unemployment Rate (%) - Not Seasonally Adjusted

Houston-Sugar Land-Baytown MSA July '11 8.9 9.0 8.5 * 8.5 *

Texas July '11 8.7 8.8 8.3 * 8.3 *

U.S. July '11 9.3 9.3 9.2 * 9.9 *

Unemployment Insurance Claims (Gulf Coast WDA)

Initial Claims July '11 21,132 23,437 -9.8 20,306 * 22,590 * -

Continuing Claims July '11 82,213 103,648 -20.7 80,139 * 108,766 * -2

TRANSPORTATION

Port of Houston Authority Shipments (Short Tons) July '11 3,501,347 3,614,463 -3.1 24,799,462 22,737,627

Air Passengers (Houston Airport System) July '11 4,731,164 4,622,835 2.3 28,344,194 43,847,769 -3

Domestic Passengers July '11 3,950,524 3,848,421 2.7 24,025,113 19,999,674 2

International Passengers July '11 780,640 774,414 0.8 4,319,081 23,848,095 -8

Landings and Takeoffs July '11 74,121 74,044 0.1 505,385 496,032

Air Freight (000 lb) July '11 77,722 76,855 1.1 538,524 507,927

Enplaned July '11 41,906 40,533 3.4 275,744 266,980

Deplaned July '11 35,816 36,322 -1.4 262,780 240,947

CONSUMERS

New Car and Truck Sales (Units, Houston MSA) July '11 23,973 17,810 34.6 149,305 139,819

Cars July '11 10,364 7,826 32.4 65,577 63,639

Trucks, SUVs and Commercials July '11 13,609 9,984 36.3 83,728 76,180

Total Retail Sales ($000,000, Houston MSA, NAICS Basis) 4Q10 27,634 26,953 2.5 94,866 88,070

Consumer Price Index for All Urban Consumers ('82-'84=100)Houston-Galveston-Brazoria CMSA July '11 201.309 194.734 3.4 197.209 * 192.468 *

United States July '11 225.922 218.011 3.6 221.627 * 216.957 *

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.

Revenue Per Available Room ($) 4Q10 48.67 47.14 3.2 51.46 * 54.05 *

POSTINGS AND FORECLOSURES

Postings (Harris County) Aug '11 3,124 3,372 -7.4 29,421 30,346

Foreclosures (Harris County) Aug '11 895 1,059 -15.5 6,877 8,898 -2

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 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 september 2011

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