houston economic update: october 2010

8/8/2019 Houston Economic Update: October 2010

http://slidepdf.com/reader/full/houston-economic-update-october-2010 1/14

October 2010 ©2010, Greater Houston Partnership

A publication of the Greater Houston Partnership Volume 19, Number 10 • October 2010

The Recession’s Over? — When the National Bureau of Economic Research(NBER) announced the recession was over—it officially ended June ’09—thenews was met with skepticism. How could it be over with so many people out of work, so many homeowners facing foreclosure, and gross domestic product (GDP)barely growing? To understand why the committee made the announcement, oneneeds to understand how the committee dates the peaks and valleys of a businesscycle. With that knowledge in hand, one can use a similar approach to determine

when the recession ended in Houston.

NBER’s Business Cycle DatingCommittee (BCDC) is the offici-al body that dates the beginningand end of all U.S. businesscycles. Economists from fiveuniversities—Harvard, MIT,Northwestern, Princeton andStanford—sit on the committee.They monitor a variety of indica-tors to determine when a busi-ness cycle peaks, begins its de-cline, hits bottom, and enters re-covery. The path of a typicalbusiness cycle is shown in thegraph on the right.

Not Just Two Bad Quarters — The media often defines a recession as a declinein GDP over two consecutive quarters. That’s partially correct. In dating a reces-sion, NBER looks for a significant decline in economic activity spread across the

economy, lasting more than a few months and normally visible in real GDP, realincome, employment, industrial production, and real wholesale and retail sales.Though unemployment insurance claims and unemployment rates make headlines,they aren’t reliable barometers for dating the business cycle. Unemployment ratestend to remain low in the early stages of a recession and high well into the re-covery. For example, when the previous recession ended in November ’01, the un-employment rate inched up for 19 months before it declined. Nor does NBER rely



HOUSTON—THE ECONOMY AT A GLANCE


on unemployment insurance claims to date a business cycle. There is too much“noise” in the data.

There is no fixed rule as to when the committee issues its pronouncement. Thereare lags in reporting the data, frequent errors in measuring change, and oftensubstantial revisions to original estimates. The committee waits for all the data tobe in and revisions to be completed, before dating the beginning and end of arecession. It waited 11 months to announce that the cycle peaked in December ’07and 15 months to announce the recession ended in June ’09.

In making its announcement, the committee determined that the trough for realGDP, real manufacturing, real wholesale and retail trade and industrial productionoccurred in June ’09. The lows for real income and aggregate hours worked oc-curred in October ’09. The bottom for employment was December ’09. Based onthose indicators, NBER determined the recession ended 16 months ago. It alsoissued a caveat:

“In determining that a troughoccurred in June 2009, thecommittee did not concludethat economic conditions sincethat month have been favorableor the economy has returned tooperating at normal capacity.Rather, the committeedetermined only that the reces-sion ended and a recovery be-gan that month,” the officialrelease stated. Nonetheless,the recession is over. The pathof the recent U.S. businesscycle is shown on the right.

Houston Has its Own Indictors — NBER dates the national business cycle. Itdoesn’t date local recessions. The point in the U.S. business cycle at which an indi-vidual metro slides into recession and emerges from the trough depends on its owneconomy. Though there is no official organization to date Houston’s business cy-

cle, the concepts that NBER applies to the U.S. economy apply to Houston as well.When a recession begins in Houston it is seen across a variety of indicators. Thoseindicators and the messages they send are explained on the following page.





The Houston PurchasingManagers Index (PMI) is ashort-term leading indicatorof regional economic activ-ity. It is based on a survey of

80 local purchasing execu-tives who are asked aboutover-the-month changes attheir firms in employment,sales production, cost of goods sold, inventories, leadtimes and prices paid formajor purchases. PMI read-ings below 50 signal likelycontraction within the nextthree to four months; read-ings above 50 signal likely expansion. The Houston PMI peaked at 60.6 in June’08, fell to 39.0 in March of ’09, and returned to 50-plus readings in October ’09.In the graph above, note how closely the PMI mirrors the typical business cycle.The PMI currently stands at 52.5, signaling continued expansion through the endof the year. When the PMI turned up last spring, it was the first indictor to suggestthe economy had begun to recover.

The Baker Hughes NorthAmerican Rig Count is agood barometer for the

health of the exploration in-dustry. The industry ac-counts for roughly half of Houston’s economic baseemployment. The base in-cludes those sectors of theeconomy that export goodsand services outside the re-gion. The base must remainhealthy if the secondary

sectors (stores, restaurants,dry cleaners, etc.) are to re-main healthy. The rig count peaked in September ’08 at 2,014 then plummeted to895 rigs in June ’09. Drilling activity began to recover in July ’09—four monthsafter the PMI signaled a pending recovery—and averaged 1,656 last month. In thegraph above, note how closely the rig count mirrors the typical business cycle.





Houston Airport System(HAS) Traffic is weightedtoward business travel.Houston is not a leisuredestination. In a recession,

travel budgets are amongthe first expenses to be cut.If the economy doesn’t im-prove, jobs, R&D and ca-pital budgets are next.Traffic through HAS peak-ed at 53.3 million pas-sengers (annualized) inJuly ’08 then fell for 13consecutive months reach-ing a nadir of 47.6 millionpassengers in August ’09. As businesses realized they needed face-to-face meet-ings to maintain relationships with existing clients and court new ones, travel bud-gets were restored, though not at pre-recession levels. Starting September ’09, pas-senger traffic began to pick up. In August ’10, annualized HAS traffic exceeded49.0 million passengers. Though not as pronounced, the typical pattern is clear inthe graph above.

TexasAuto Facts publish-ed by InfoNation, Inc. of Sugar Land reports local

vehicle sales and theHouston Association of Realtors® reports salesof single-family homes.Both are measures of consumer confidence.Consumers don’t makebig-ticket purchases ortake on long-term debt if uncertain about their fi-

nancial future. Vehiclesales peaked at 358,306annual units in January

’08, fell to 218,710 in December ’09, and have somewhat recovered to 235,504units in August ’10. Single-family home sales peaked at 73,809 in February ’07,bottomed at 51,666 in August ’09, and rebounded to 54,285 units in August ’10.Both auto and home sales are up from their recession bottoms.





Payroll employment isa lagging indicator. Itconfirms the direction of the economy's move-ments in recent months.

Employment in Houstonpeaked at 2.62 million jobs (seasonally adjust-ed) in August ’08, de-clined for 16 months to2.51 million jobs in Jan-uary ’10, and began toslowly improve in Feb-ruary. Employment nowstands at 2.54 million

jobs. It, too, has followed the patterns of the typical business cycle, as the graphabove shows.

Houston’s Recession is Over — Based on the PMI, rig count, air passenger traf-fic, vehicles sales, home sales and employment, it appears that Houston entered therecession in August ’08,eight months after the U.S.recession began. Houston’srecession appears to haveended in September ’09,three months after the U.S.

recession ended. Therecovery in employmentdid not begin untilFebruary ’10. This does notsuggest that conditions areideal or that the economy isoperating near capacity. Itonly means that the reces-sion in Houston is over.The path of Houston’s

recent business cycle can be seen in the graph above.

Houston’s recovery has been much like that of the U.S. so far—a clear bottom butonly a gradual return to growth. Given that oil has generally traded between $70and $80 a barrel for the past 13 months, it’s somewhat surprising that Houston’srecovery hasn’t been stronger. Nationally, the Great Recession has been exac-erbated by the Great Uncertainty—the unknown impacts of health care reform,new financial regulations, possible cap-and-trade carbon legislation, and the pend-





ing expiration of the Bush-era tax cuts. Houston continues to deal with uncertain-ties of its own—the impact of the offshore drilling moratorium and potential lay-offs at NASA. In spite of all that, Houston’s recovery has begun. The question re-mains: how long before consumers feel comfortable spending and businessmenfeel comfortable investing and hiring again?

Job Market Recovering — The Texas Workforce Commission (TWC) reportsthat the 12-month job loss for the Houston-Sugar Land-Baytown Metro Area fell to900 jobs, or less than 0.1 percent, from August ’09 to August ’10. As recently asNovember ’09, the 12-month loss stood at 103,800 jobs. The loss has declined con-sistently over the past eight months and if the trend continues Houston’s 12-month

job count should turn positive next month.

Austerity measures at local school districts are evident in the August employmentnumbers. Employment in local education fell by 5,100 in August ’10, a monthwhen payrolls traditionally grow by 3,000 to 6,000 jobs. Gains in other sectors

could not offset the steep losses in this sector.

Private sector employment continues to recover. The region added 5,700 privatesector jobs in August ’10. The 12-month loss has fallen to 6,300 jobs this yearcompared to a 12-month loss of 71,500 jobs the same time last year. Since January’10, the private sector has added 49,600 jobs. However, this should be taken with anote of caution. First, the numbers are not seasonally adjusted. Second, they aresubject to change when TWC issues its benchmark revisions in March ’11. But thedata do suggest the economy is into recovery and that employment is beginning torebound.

Several sectors continue to perform well. Health care and social assistance added8,700 jobs over the past 12 months and 22,500 jobs since the recession began,though the rate of job growth appears to have tapered off in recent months. Oil andgas extraction added 2,500 jobs over the past 12 months and 4,200 since the reces-sion began. The industry seems to grow by 100 to 300 jobs every month regardlessof what’s happening in Washington, D.C. or the Gulf of Mexico. Manufacturingcontinues to recover, having added 4,500 jobs since the first of the year, yet em-ployment remains 23,800 jobs below the previous peak. Most of the recovery hasoccurred in durable goods manufacturing, up 2,500 jobs over the year, while em-ployment in non-durable goods manufacturing is down by 1,500 jobs over the year.

Several sectors continue to struggle. The construction industry lost 11,200 jobsover the past 12 months. While one month does not make a trend, construction didadd 700 jobs in August ’10 and is up by 1,200 jobs since January ’10. Theindustry has a long way to go, however, before it recovers the nearly 40,000 jobslost during the recession. Strong employment growth in other sectors is needed tospur the demand for housing, office and industrial space which in turn wouldgenerate construction jobs.





Hotel Market Stabilizes — The Houston area hotel market has begun to stabilize.Occupancy, average daily rate and revenue per available room (RevPAR) appear tohave leveled out and are forecasted to grow in ’11.

Hotel occupancy was at 57.6 percent in Q2/10, up slightly from 56.8 percent inQ1/10, Colliers PKF Consulting reports. The average daily rate in Houston hotelsin Q2/10 was $95.17, 1.4 percent above Q1/10 rates. RevPAR, a measure that com-bines occupancy and room rate, averaged $54.84 in the quarter, up 2.9 percentfrom Q1/10.

Colliers PKF Consulting expects occupancy to remain relatively flat for the re-mainder of ’10 due to new rooms coming into the market. Although many projectswere put on hold or canceled with the onset of the recession, projects that hadstarted prior to the recession continued as planned. Supply of new rooms is pro-

jected to rise 6.7 percent in ’10, but then slow to a 3.1 percent increase in ’11 and1.8 percent in ’12.

“2010 has ushered in cautious optimism among Houston hotels. Occupancies andaverage daily rates have seemed to flatten out and appear ready to start growing ina positive direction,” says Randy McCaslin in Colliers PKF’s Texas Trends.

Over 100,000 Hispanic-Owned Firms in Houston Region — The number of Hispanic firms in the Houston region more than doubled from ’97 to ’07, ac-cording to data released this month by the U.S. Census Bureau. In ’97, Hispanicsowned 44,632 businesses and represented 12.4 percent of all firms in the region,while in ’07, there were 104,370 Hispanic-owned firms, accounting for 20.0 per-cent of all firms.

Even with the growth in the number of Hispanic-owned businesses in the metroarea, Hispanics, based on their share of the region’s population, areunderrepresented in the business community. Hispanics represent 34.4 percent of the region’s population, but own only 20.0 percent of the region’s businesses.

The majority of Hispanic firms are small. The Census distinguishes between “em-ployer” and “non-employer” firms. Employer firms have payrolls and paid em-ployees, while non-employer firms consist of self-employed individuals operatingvery small unincorporated businesses. Non-employer firms account for 93.3 per-cent of Houston’s Hispanic-owned firms and employer firms represent 6.7 percent.

Hispanic firms in Houston reported $16.5 billion in revenue in ’07, 1.8 percent of the region’s total revenue. Hispanic-owned firms in the wholesale trade and con-struction industries accounted for nearly half of total Hispanic business revenue.Wholesale trade accounted for 30 percent, while construction firms represented 18percent.





Data on Asian-owned, Black-owned and women-owned businesses is set for re-lease in late ’10 and early ’11.

More People Flying — The Houston Airport System (HAS) served 4.4 millionpassengers in August ’10, bringing its 12-month total to 49.0 million passengers.This represents a 2.8 percent increase in total passengers from August ’09.International travel continues to be the main contributor to this growth with a 7.8percent increase over the last 12 months. Domestic travel increased by 1.9 percentover the same period.

Air freight volumes also continue to grow. HAS handled 74.7 million pounds of airfreight in August ’10, up 20.0 percent from August ’09. Year-to-date, HAS hashandled 582.6 million pounds of air freight, up 18.0 percent compared to the sameeight-month period last year.

Trade Continues to Grow — The Houston-Galveston Customs District handled

$118.7 billion in trade over the first seven months of this year, up 29.8 percentfrom $91.4 billion during the same period last year. Exports totaled $52.1 billion,up 26.4 percent from ’09, and imports totaled $66.5 billion, up 32.6 percent fromthe same period last year.

Five commodities accounted for 73.7 percent of all exports through Houston so farthis year: non-crude oil ($14.7 billion), industrial machinery ($9.6 billion), organicchemicals ($7.7 billion), plastics ($3.9 billion) and electric machinery ($2.4 bil-lion). Five commodities accounted for 84.8 percent of all imports through Houstonso far this year: crude oil ($45.1 billion), industrial machinery ($5.0 billion), ironand steel ($2.7 billion), organic chemicals ($2.1 billion) and electric machinery

($1.4 billion).

Houston’s top 20 trade partners generated 71.6 percent of the region’s total trade.All but three are showing increases in trade during the first seven months of ’10,compared to the same period last year.

Patrick Jankowski, Marycruz García andJenny 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.





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 Aug '10 1,638 973 68.3 1,474 * 1,091 * 35.1

Spot Crude Oil Price ($/bbl, West Texas Intermediate) Aug '10 76.17 71.08 7.2 77.47 * 55.90 * 38.6

Spot Natural Gas ($/MMBtu, Henry Hub) Aug '10 4.24 3.01 40.9 4.61 * 3.86 * 19.4

UTILITIES AND PRODUCTION

Houston Purchasing Managers Index Aug '10 52.5 46.8 12.2 54.9 * 41.9 * 31.0Nonresidential Electric Current Sales (Mwh, CNP Service Area) Aug '10 4,656,313 4,851,837 -4.0 33,199,596 32,951,667 0.8

CONSTRUCTION

Total Building Contracts ($, Houston MSA) Aug '10 543,396,000 734,116,000 -26.0 5,615,808,000 6,060,397,000 -7.3

Nonresidential Aug'10 188,910,000 337,763,000 -44.1 2,150,570,000 2,755,694,000 -22.0

Residential Aug '10 354,486,000 396,353,000 -10.6 3,465,238,000 3,304,703,000 4.9

Building Permits ($, City of Houston) July '10 264,381,291 391,776,848 -32.5 1,915,292,501 2,441,359,244 -21.5

Nonresidential July '10 200,339,600 291,032,204 -31.2 1,276,957,838 1,891,272,020 -32.5

New Nonresidential July '10 80,418,076 206,294,123 -61.0 429,393,202 779,950,337 -44.9

Nonresidential Additions/Alterations/Conversions July '10 119,921,524 84,738,081 41.5 847,564,636 1,111,321,683 -23.7

Residential July '10 64,041,691 100,744,644 -36.4 638,334,663 550,087,224 16.0

New Residential July '10 48,077,428 72,165,892 -33.4 488,185,903 402,091,142 21.4

Residential Additions/Alterations/Conversions July '10 15,964,263 28,578,752 -44.1 150,148,760 147,996,082 1.5

Multiple Listing Service (MLS) Activity

Closings Aug '10 4,977 5,873 -15.3 42,135 41,669 1.1

Median Sales Price - SF Detached Aug '10 159,000 160,000 -0.6 154,201 * 150,644 * 2.4

Active Listings Aug '10 55,079 46,023 19.7 50,652 * 45,482 * 11.4

EMPLOYMENT (Houston-Sugar Land-Baytown MSA)

Nonfarm Payroll Employment Aug '10 2,511,200 2,512,100 0.0 2,507,500 * 2,546,800 * -1.5

Goods Producing (Natural Resources/Mining/Const/Mfg) Aug '10 480,100 487,500 -1.5 474,800 * 505,100 * -6.0

Service Providing Aug '10 2,031,100 2,024,600 0.3 2,032,700 * 2,041,700 * -0.4

Unemployment Rate (%) - Not Seasonally Adjusted

Houston-Sugar Land-Baytown MSA Aug '10 8.8 8.4 8.6 * 7.3 *

Texas Aug '10 8.4 8.1 8.3 * 7.5 *

U.S. Aug '10 9.5 9.6 9.9 * 9.1 *

Unemployment Insurance Claims (Gulf Coast WDA)

Initial Claims Aug '10 23,007 22,922 0.4 22,642 * 26,504 * -14.6

Continuing Claims Aug '10 106,578 150,524 -29.2 108,493 * 132,218 * -17.9

TRANSPORTATION

Port of Houston Authority Shipments (Short Tons) Aug '10 3,620,028 2,788,711 29.8 26,357,655 24,298,408 8.5

Air Passengers (Houston Airport System) Aug '10 4,402,074 4,400,473 0.0 33,286,035 32,786,804 1.5

Domestic Passengers Aug '10 3,623,568 3,629,365 -0.2 27,471,664 27,382,854 0.3

International Passengers Aug '10 778,506 771,108 1.0 5,814,371 5,403,950 7.6Landings and Takeoffs Aug '10 73,693 77,940 -5.4 569,725 596,400 -4.5

Air Freight (000 lb) Aug '10 74,696 62,256 20.0 582,623 493,955 18.0

Enplaned Aug '10 38,085 32,413 17.5 305,064 263,940 15.6

Deplaned Aug '10 36,611 29,843 22.7 277,559 230,015 20.7

CONSUMERS

New Car and Truck Sales (Units, Houston MSA) Aug '10 23,399 25,683 -8.9 163,218 146,424 11.5

Cars Aug '10 10,024 13,075 -23.3 73,663 67,738 8.7

Trucks, SUVs and Commercials Aug '10 13,375 12,608 6.1 89,555 78,686 13.8

Total Retail Sales ($000,000, Houston MSA, NAICS Basis) 1Q10 20,456 18,791 8.9 20,456 18,791 8.9

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

Houston-Galveston-Brazoria CMSA Aug '10 195.165 191.687 1.8 193.822 * 190.061 * 2.0

United States Aug '10 218.312 215.834 1.1 217.692 * 213.752 * 1.8

Hotel Performance (Harris County)

Occupancy (%) 2Q10 57.6 57.5 55.3 * 60.1 *

Average Room Rate ($) 2Q10 95.17 98.64 -3.5 94.50 * 100.52 * -6.0

Revenue Per Available Room ($) 2Q10 54.84 56.72 -3.3 52.30 * 60.43 * -13.5

POSTINGS AND FORECLOSURES

Postings (Harris County) Sep '10 4,691 3,385 38.6 35,037 29,047 20.6

Foreclosures (Harris County) Sep '10 1,604 818 96.1 10,502 7,952 32.1

YEAR-TO-DATE

TOTAL OR AVERAGE*MONTHLY DATA





Sources

Rig 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 Realtors® Employment, 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 Comptroller’s OfficeConsumer Price Index U.S. Bureau of Labor StatisticsHotels PKF Consulting/Hospitality Asset

Advisors InternationalPostings, Foreclosures Foreclosure Information & Listing

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 [email protected] . 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. Iyou would like to receive those updates by e-mail, usually accompanied by commentary, please e-maiyour request for Key Economic Indicators to [email protected] with the same identifying information

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





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

Aug' 10 July ' 10 Aug '09 July '10 Aug '09 July '10 Aug

Total Nonfarm Payroll Jobs 2,511.2 2,510.8 2,512.1 0.4 -0.9 0.0

Total Private 2,155.6 2,149.9 2,161.9 5.7 -6.3 0.3

Goods Producing 480.1 478.5 487.5 1.6 -7.4 0.3

Service Providing 2,031.1 2,032.3 2,024.6 -1.2 6.5 -0.1

Private Service Providing 1,675.5 1,671.4 1,674.4 4.1 1.1 0.2

Mining and Logging 90.2 90.1 87.4 0.1 2.8 0.1

Oil & Gas Extraction 51.5 51.3 49.0 0.2 2.5 0.4

Support Activities for Mining 37.5 37.6 37.3 -0.1 0.2 -0.3

Construction 168.4 167.7 179.6 0.7 -11.2 0.4

Manufacturing 221.5 220.7 220.5 0.8 1.0 0.4

Durable Goods Manufacturing 142.2 141.6 139.7 0.6 2.5 0.4Nondurable Goods Manufacturing 79.3 79.1 80.8 0.2 -1.5 0.3

Wholesale Trade 128.2 128.0 130.2 0.2 -2.0 0.2

Retail Trade 261.4 260.3 263.5 1.1 -2.1 0.4

Transportation, Warehousing and Utilities 120.5 120.1 121.6 0.4 -1.1 0.3

Utilities 16.6 16.6 16.7 0.0 -0.1 0.0

Air Transportation 24.0 24.0 24.6 0.0 -0.6 0.0

Truck Transportation 18.5 18.5 18.7 0.0 -0.2 0.0

Pipeline Transportation 8.9 9.0 8.7 -0.1 0.2 -1.1

Balance, incl Warehousing, Water & Rail Transport 52.5 52.0 52.9 0.5 -0.4 1.0

Information 32.5 32.6 34.4 -0.1 -1.9 -0.3

Telecommunications 17.3 17.3 18.0 0.0 -0.7 0.0

Finance & Insurance 86.7 86.4 88.0 0.3 -1.3 0.3

Real Estate & Rental and Leasing 51.1 51.2 51.0 -0.1 0.1 -0.2

Professional & Business Services 353.3 352.3 355.1 1.0 -1.8 0.3

Professional, Scientific & Technical Services 170.0 169.9 172.7 0.1 -2.7 0.1Legal Services 23.0 23.2 23.3 -0.2 -0.3 -0.9

Accounting, Tax Preparation, Bookkeeping 15.6 15.6 16.6 0.0 -1.0 0.0

Architectural, Engineering & Related Services 60.8 60.8 60.3 0.0 0.5 0.0Computer Systems Design & Related Services 23.6 23.4 24.0 0.2 -0.4 0.9

Admin & Support/Waste Mgt & Remediation 162.6 162.4 163.3 0.2 -0.7 0.1Administrative & Support Services 154.8 154.6 155.1 0.2 -0.3 0.1

Employment Services 51.4 51.2 52.4 0.2 -1.0 0.4

Educational Services 42.2 41.4 41.3 0.8 0.9 1.9

Health Care & Social Assistance 266.4 264.6 257.7 1.8 8.7 0.7

Arts, Entertainment & Recreation 30.3 31.2 30.5 -0.9 -0.2 -2.9

Accommodation & Food Services 210.2 210.0 208.8 0.2 1.4 0.1

Other Services 92.7 93.3 92.3 -0.6 0.4 -0.6

Government 355.6 360.9 350.2 -5.3 5.4 -1.5

Federal Government 30.2 32.2 28.8 -2.0 1.4 -6.2State Government 69.1 69.2 68.4 -0.1 0.7 -0.1State Government Educational Services 36.0 36.1 35.0 -0.1 1.0 -0.3

Local Government 256.3 259.5 253.0 -3.2 3.3 -1.2Local Government Educational Services 166.4 171.5 167.0 -5.1 -0.6 -3.0

SOURCE: Texas Workforce Commission





75

80

85

90

95

100

105

110

115

45

50

55

60

65

70

75

80

Q1/01 Q1/02 Q1/03 Q1/04 Q1/05 Q1/06 Q1/07 Q1/08 Q1/09 Q1/10 Q1/11

A V E R A G E R O O M

R A T E , 4 Q T R E N D I N G

A V E R A G E O C C U P A N C Y

A N D R E V P A R , 4 Q T R E N D

I N G

HOUSTON HOTEL DATA2000 - 2011

Occcupancy Revenue Per Available Room (RevPAR) Room Rate Source: Colliers PKF Consulting (Q1/05 –Q2/10 ), GHP Calculated Qtrly Avg from Hospitality Advisory Services

(Q1/00-Q4/04)

-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

Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11

1 2 - M O N T H

C H A N G E

( 0 0 0 )

N O N F A R M

P A Y R O L L

E M P L O Y M E N T

( 0 0 0 , 0 0 0 )

HOUSTON MSA EMPLOYMENT2001-2011

12-MONTH CHANGE JOBS Source: Texas Workforce Commission





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


S E R V I C E - P R O V I D I N G

( 0 0 0 , 0 0 0 )

G O O D S - P R O D U C I N G

( 0 0 0 )

GOODS-PRODUCING AND SERVICE-PROVIDING EMPLOYMENTHOUSTON MSA 2001-2011

GOODS-PRODUCING JOBS SERVICE-PROVIDING JOBS

Source: Texas Workforce Commission

0

1

2

3

4

5

6

7

8

9

10

11


P E R C E N T O F L A B O R F O R C E

UNEMPLOYMENT RATEHOUSTON & U.S. 2001-2011

HOUSTON U.S. Source: Texas Workforce Commission





0

4

8

12

16

20

24

28

0

20

40

60

80

100

120

140


H E N R Y H U B N A T U R A L G A S ( $ / M M B T U )

W E S T T E X A S I N T E R M E D I A T E ( $ / B B L )

SPOT MARKET ENERGY PRICES2001 - 2011

WTI MONTHLY WTI 12-MO AVG GAS MONTHLY GAS 12-MO AVG Source: U.S. Energy Information Administration

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%


INFLATION: 12-MONTH CHANGE2001-2011

HOUSTON CPI-U U.S. CPI-U

Source: U.S. Bureau of Labor Statistics

houston economic update: october 2010

Documents