Houston Economy at a Glance -November 2011

8/3/2019 Houston Economy at a Glance -November 2011

1/14

October 2011 2011, Greater Houston Partnership Page 1

A publication of the Greater Houston Partnership Volume 20, Number 11 November 2011

Houston Continues to Lead the Nations Recovery Among the nations 20most populous metropolitan areas, Houston has recovered the highest percentageof jobs lost in the recession than any other major U.S. metro. At the current rate ofgrowth, Houston may return to its previous employment peak by the end of thisyear. Note that two of the three metros leading the recovery are in Texas.

Houston is recovering quicker for several reasons. First, the region lost a smaller por-tion of its employment during in the recession. When the recovery began, Houstonhad less ground to make up1. Second, Houstons core industry, oil and gas, is booming

1 The fact that of all the major metros Houston had the shallowest recession was discussed in the May 11 issue ofHouston:The Economy at a Glance. Factors that minimized the recessions impact on Houston were discussed in detail in the June 11issue. Back issues ofGlance can be accessed at the members-only section of the GHP website at,http://member.houston.org/blog/main.asp

1.3%

4.0%

10.3%

11.0%

11.7%

12.4%

13.4%

14.0%

16.5%

18.7%

22.4%

22.5%

23.0%

27.6%

31.3%

63.7%

72.4%

73.1%

91.7%

Atlanta

Detroit

Los Angeles

San Francisco

Miami

Chicago

Philadelphia

New York

Phoenix

Tampa

St. Louis

Seattle

Minneapolis

San Diego

Baltimore

Boston

Dallas

Washington

Houston

* Seasonally Adjusted Nonfarm Payroll Employment

Source: U.S. Bureau of Labor Statistics

Percentage of Jobs Recovered Though September '11*20 Most Populous U.S. Metro Areas
http://member.houston.org/blog/main.asphttp://member.houston.org/blog/main.asphttp://member.houston.org/blog/main.asp


2/14

HOUSTONTHE ECONOMY AT A GLANCE

November 2011 2011, Greater Houston Partnership Page 2

again. Employment in oil and gas extraction passed its pre-recession peak in June ofthis year. Nearly all the jobs lost in equipment manufacturing have been recovered.Two-thirds have been recouped in oilfield services. And third, the region continues todraw residents from other statessome with jobs, some looking for jobs and otherslooking to start businesses here. Houstons population growth is driving the demand

for consumer goods and services, creating jobs and opportunities along the way.

Energys Booming AgainSince collapsing three years ago, oil prices have stabi-lized and drilling has returned to a robust pace. The surge in the hydraulic fracturingof oil and gas wells, which requires a significant commitment of labor, capital andequipment, has been a boon to Houston. The combined revenues from North Ameri-can operations for Houstons three largest oilfield service firmsBaker Hughes, Hal-liburton and Schlumbergerare up 75.1 percent, or $4.2 billion (Q3/11 versusQ3/10). And thats just one quarter. Multiply it by four quarters and extend that sort ofgrowth to the other energy-related com-

panies in the region, and its apparent therole that the drilling boom and hydraulicfracturing are playing in Houstons re-covery.

That role becomes even more importantwhen one considers the multiplier effectenergy has in Houston. The U.S. Bureauof Economic Analysis (BEA) has ana-lyzed how inputs in one industry impactother industries. According to BEAsanalysis, in Houston each job in oil andgas exploration supports another 4.7 jobsin other sectors of the local economy.Each job in oilfield services supports anadditional 2.1 jobs. Each job in oilfieldequipment manufacturing supports 3.5additional jobs in the region. In the re-covery to date, the region has added

3,700 oil and gas extraction jobs, 8,200oilfield services jobs, and 4,300 jobs in energy-related manufacturing. One can seethat when oil prices are stable at profitable levels and drilling activity on the rise, hav-ing the nations exploration infrastructure clustered in Houston is a good thing.

An additional benefit of the boom is that energy company payrolls have grown. Theoil industry paid $283 million more in salaries and wages in the second quarter of thisyear than it did the same quarter last year. On an annual basis, thats $1 billion more

Oil Prices $/Barrel, Monthly Average, WTI

Pre-Recession Peak $145.31 Jul 08

Recession Trough $33.17 Dec 08

Arab Spring Peak $110.82 Apr 11

3-Month Average $85.50 AugOct 11

Source: U.S. Energy Information Administration

North American Rig Count, Monthly Average

Pre-Recession Peak 2,018 Sep 08

Recession Trough 895 Jun 09

Current Level 2,012 Oct 11

Source: Baker Hughes, Inc.

Total Wages, Mining & Logging IndustryHouston Metro Area

Q2/08 $2.215 billion




Note: In Houston, the mining and logging industry is pre-dominantly oil and gas extraction.Source: Quarterly Census of Employment and Wages,Texas Workforce Commission


3/14



in pre-tax income for the region. Those workers are spending their paychecks in localstores, restaurants, theatres and housing communities. One need not be in the oil busi-ness to benefit from the current drilling boom.

Some pundits have suggested that Houstons job growth, because it is fueled by the

drilling activity and high oil prices, is something less than a true recovery. Given thatHouston has created more than 125,000 jobs since the recovery began and that Hou-ston leads all other metros in job growth, that suggestion is utter nonsense.

Dont Knockthe Benefits of Population Growth, EitherIf Houstons populationbase werent growing, the region wouldnt be generating jobs in health care, personalservices, retail trade, accommodation and food services, and educational services. Agrowing population translates into an expanding consumer market. The number of pa-tients needing health care increases. More diners sit down for meals at Houston restau-rants and cafs. The fan base for professional sports expands. The pool of patrons for

the arts grows deeper. More shoppers opentheir wallets at area malls. Local repairmenreceive more service calls. And more house-holds lease apartments or sign mortgages onhomes.

How fast is Houston growing? The record ofthe last decade offers some clues. Between 00 and 10, the 10-county Houston metro

2area added approximately 1.23 million residents. Approximately half of the populationgrowth came from in-migration and half

came through the natural increase in thepopulation (i.e., the excess of births overdeaths. Thats equivalent to 123,000 resi-dents per year, 10,250 per month, 2,365per week, or about 340 per day. In the 20minutes it takes to read this issue ofGlance, Houston added another five resi-dents. Judging by the number of out-of-state license plates on the freeways and in

parking lots, that trend has probably con-tinued.

Whats drawing people to Houston? Notany one factor. If one lives in an expensive metro such as New York, Los Angeles orSan Francisco, the regions low cost of living, especially moderately priced housing,may be the draw. If one lives in an area with harsh winters, such as Chicago or Pitts-

2 The Houston metro area includes Austin, Brazoria, Chambers, Fort Bend Galveston, Harris, Liberty, Montgomery, San Ja-cinto and Waller counties.

Metro Houston Population GrowthPopulation 00 4,715,407

Population 10 5,946,800

Change 00 10 1,231,393

Annual Average 123,139

Source: U.S. Census Bureau

Cost of Living IndexU.S. Average = 100.0

Overall Housing

New York (Queens), NY 156.9 235.7

Los Angeles, CA 133.6 197.3

San Diego, CA 130.8 169.2

Houston, TX 90.5 84.2

Source: ACCRA Cost of Living Index, Q1/11

Average Annual Snowfall, Inches

Minneapolis-St. Paul, MN 49.6

Pittsburgh, PA 43.5

Chicago, IL 38.2

Houston, TX 0.4

Source: National Oceanic and Atmospheric Administration


4/14



burgh, the regions mild climate may be the draw. If one lives in city with limited jobopportunities, such as Detroit or Buffalo, the regions growing economy may be thedraw. If one lives in a rural area or smallmetro, Houstons cosmopolitan nature maybe the draw.

Even if in-migration to Houston suddenlystopped, the region would continue to growthrough natural increase by 55,000 to65,000 residents each year. Through naturalincrease alone Houston would be home to half a million more additional residents bythe end of the decade.

Some pundits have suggested that job growth fueled by the need to serve an expandingpopulation is something less than a true recovery. Again, given that Houston has re-

covered more than 125,000 jobs so far and leads all major metros in job growth, thatsuggestion is also nonsense.

The Latest on EmploymentThe 10-county Houston-Sugar Land-Baytown Metro-politan Statistical Area gained 66,300 jobs in the 12 months ending September 11, a2.6 percent increase, according to estimates by the Texas Workforce Commission(TWC).

A few items of note:

The mining and logging sector, which in Houston is primarily oil and gas, added10,700 jobs over the year, an increase of 12.3 percent.

The second fastest growing sector is heavy and civil construction, which added4,000 jobs since September 10, an increase of 10.4 percent. Construction as awhole added 9,700 jobs since September 10, a gain of 5.6 percent.

Ambulatory health care (i.e., doctors offices and outpatient clinics) has added8,200 jobs since September 10, an increase of 6.6 percent, while employment inhospitals remained flat over the same period.

Administrative and support services, which includes facilities support, businessservices support, contract employment, professional employment organizationsand janitorial services, added 11,000 jobs, an increase of 6.8 percent.

Governmental budget woes continue to show up in the employment numbers,with the sector having lost 4,400 jobs since last September, a decline of 1.2 per-cent. Notably, local government educational services shed 4,800 jobs, or 2.5percent.

Unemployment Rate, Unadjusted, Sep 11Las Vegas, NV 13.6

Detroit, MI 11.7

Atlanta, GA 10.3Houston, TX 8.6



5/14



Another Sector RecoveringReal estate, traditionally among the last sectors to re-cover from a recession, appears to be doing just that. Office, industrial and retail mar-kets are experiencing strong leasing activity and positive net absorption in Houston,reports the real estate firm Jones Lang LaSalle (JLL). Through the first three quartersof this year, Houston has absorbed 1.8 million square feet of office space, 1.5 million

square feet of industrial space, and 800,000 square feet of space of retail space.

In another sign of an im-proving market, the in-dustrial vacancy ratepeaked at 6.4 percent inthe fourth quarter of 10and has trended down-ward ever since. It nowstands at 5.3 percent, ac-

cording to JLL. Andwhile Houston has morethan 850,000 square feetof retail space under con-struction, notes JLL, 73percent of it is preleased,supporting continued decline in the vacancy rate and stabilization of rental rates. Likemany other sectors of the economy, strong demand from the energy sector continuesto drive the market.

Airport System Key Driver of Houston EconomyThe Houston Airport System(HAS) handled 3.79 million passengers in September, up 1.7 percent from the 3.73million handled in September last year. Year to date, aviation travel is up 1.5 percent,from 37.02 million travelers in 10 to 37.56 million in 11. Domestic passenger trafficrose 2.6 percent from 3.14 million in September 10 to 3.22 million this past Septe m-

ber. International passenger traffic fell 3.1 percent from 589,196 in September 10 to571,207 passengers this September. This is the second consecutive month that interna-tional volume declined while domestic traffic grew. This is contrary to the trend of in-ternational travel driving the passenger growth in the HAS. Prior to August 11, the

last time international activity declined while domestic activity rose was in November05.

The HAS recently released its updated economic impact study, reporting that the sys-tem created over 234,000 direct, indirect and induced jobs and generated more than$27.6 billion in output3for the Houston regional economy in 10. Bush Intercontinen-tal was responsible for $22.45 billion of this impact, while Houston Hobby accounted

3 Output is defined as the sales revenue generated from all impacted entities by HAS operations.

5.85.5

5.1 5.1 5.1 5.34.8

5.2

6.16.4 6.2 6.4 6.1 6.1

5.5 5.6 5.7 5.7 5.3

0

1

2

3

4

5

6

7

Source: Jones Lang LaSalle

Houston-Area Industrial Vacancy Rates


6/14



for $4.47 billion and Ellington International for $647.10 million. GRA, Incorporatedevaluated employment, earnings and output for the businesses and entities that operateat or rely on the airport system.

Economic Impact of the Houston Airport System

on the Houston Region

EmploymentEarnings

4

($mil)

Output

($mil)

% of Total

Output

Direct5 47,456 $3,133 $8,667 31.5

Indirect6 47,713 $1,125 $3,664 13.3

Induced7 139,281 $4,593 $15,227 55.2

Total 234,281 $8,851 $27,558 100.0

Source: Houston Airport System Economic Impact Study, 2011

A study conducted in 04 estimated the airport systems impact on the local economyto be around $24.2 billion. Kirk Rummel, chief financial officer of HAS, notes, AsSouthwest, United and Continental have all brought more flights into the region, theassociated economic benefits have come with those. The increase in the airports im-

pact is directly related to passenger growth.

Clickhereto read the full economic impact study.

Houston Moves Up in Foreign Trade RankingThe Houston-Galveston CustomsDistrict has surpassed the Detroit Customs District to be the third busiest district in thenation. The last time Houston ranked third by total trade value was in October 09.

4Earnings include all wages and salary disbursements, supplements to wages and salaries, and proprietors income.5 Direct impacts are defined as impacts that result from the production of aviation and related services at the three airportsand from the spending of airport-dependent entities in the Houston regionfor example, airline operations, airline tenants,air traffic control, and airport operations.6 Indirect impacts are defined as the expenditures of air travelers in the region on items such as transportation to/from theairport, airport parking, car rentals, lodging, recreation and meals.7Induced impacts, also referred to as multiplier effects, include the re -spending of earnings by employees and businessesdirectly and indirectly impacted by HAS. The induced impacts account for the additional employment and income remainingin the local economy after all rounds of spending.
http://www.fly2houston.com/newsroom-Presentationshttp://www.fly2houston.com/newsroom-Presentationshttp://www.fly2houston.com/newsroom-Presentationshttp://www.fly2houston.com/newsroom-Presentations


7/14



Houston overtook Detroit in May 11, and the gap has continued to widen in recentmonths. In May, Houston exceeded Detroit by $1.7 billion in foreign trade, but in Au-gust, Houston outpaced Detroit by $12.6 billion. Houstons foreign trade has grown7.1 percent since May, while Detroits trade increased by only 2.3 percent.

Houston handled cargo valued at $176.1 billion through the first eight months of 11,up 28.4 percent from $137.1 billion handled during the same period last year. Exportstotaled $77.3 billion through the first eight months of 11, up 28.4 percent from $60.2billion over the same period last year. Imports totaled $98.8 billion, up 28.5 percentfrom $76.9 billion over the same period last year.

0

50

100

150

200

250

300

350

400

Jan-09 Jun-09 Jan-10 Jun-10 Jan-11 Jun-11

12-monthTradeValue,

$billions

Source: U.S. Census Bureau,

Foreign Trade Division

Foreign Trade through the Top 5 Customs Districts(12-month total, $ billions)

Los Angeles

New York City

Detroit

Houston

New Orleans


8/14



Partnership to Host 2012 Economic Outlook EventPlan to attend GHPs annualEconomic Outlookscheduled for Thursday, December 8, at the Westin Galleria Hotel.The event features a panel of local business leaders discussing Houston economictrends, the Partnerships employment forecast for 2012, and a luncheon keynote pres-

entation by Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce.

The event begins at 10:15 a.m. with a panel discussion moderated by Len Cannon,KHOU-11 news anchor. Experts providing their insights into Houston economy in-clude Daniel G. Bellow, President, Jones Lang LaSalle Americas; Chris Bernard, En-trepreneurship, Innovation & Design Startup Director and Advisor, Microsoft; LupeFraga, Chairman and CEO, Tejas Office Products; and Cynthia B. Taylor, CEO, OilStates International, Inc.

After the morning presentations, the Partnership will present its 11th Annual Employ-

ment Forecast and Economic Outlook for the coming year. The event culminates withkeynote speaker Thomas Donohue providing his assessment of the direction the U.S.and global economies will take in 2012.

Cost to attend the half-day event is $100, which includes the panel discussion, thePartnerships forecast, the luncheon and the keynote speech. To register for the event,go towww.houston.orgor call Kristin Smith at 713-844-3694.

Patrick Jankowski andJenny Hsu contributed to this issue ofHouston:The Economy at a Glance.

STAY UP TO DATE!

Are you a Partnership Member? If so, log in to your account hereand accessarchived issues of Glanceavailable only to members. You can also sign-up forRSS feeds to receive Houstons latest economic data throughout the month.

If you are a non-member and would like to receive this electronic publication on the first workingday of each month, please email your request for Economy at a Glance [email protected] your name, title and phone number and your companys name

and address. For information about joining the Greater Houston Partnership and gaining accessto this powerful resource, call Member 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 [email protected] the same identifying information.

You may request Glanceand Indicatorsin the same email.
http://www.uschamber.com/about/board/thomas-j-donohuehttp://www.houston.org/greater-houston-partnership/about-us/bios.asp?bioID=176187http://www.houston.org/http://www.houston.org/http://www.houston.org/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=mbrshttp://www.houston.org/http://www.houston.org/greater-houston-partnership/about-us/bios.asp?bioID=176187http://www.uschamber.com/about/board/thomas-j-donohue


9/14



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

Sep '11 Aug '11 Sep '10 Aug '11 Sep '10 Aug '11 Sep '1

Total Nonfarm Payroll Jobs 2,605.8 2,593.3 2,539.5 12.5 66.3 0.5 2.

Total Private 2,233.1 2,236.7 2,162.4 -3.6 70.7 -0.2 3.3

Goods Producing 503.0 505.0 473.6 -2.0 29.4 -0.4 6.2Service Providing 2,102.8 2,088.3 2,065.9 14.5 36.9 0.7 1.8

Private Service Providing 1,730.1 1,731.7 1,688.8 -1.6 41.3 -0.1 2.4

Mining and Logging 91.7 90.8 81.6 0.9 10.1 1.0 12.Oil & Gas Extraction 49.0 48.9 45.9 0.1 3.1 0.2 6.

Support Activities for Mining 39.3 38.9 34.7 0.4 4.6 1.0 13.

Construction 182.7 184.0 173.0 -1.3 9.7 -0.7 5

Manufacturing 228.6 230.2 219.0 -1.6 9.6 -0.7 4.Durable Goods Manufacturing 149.3 150.6 141.4 -1.3 7.9 -0.9 5

Nondurable Goods Manufacturing 79.3 79.6 77.6 -0.3 1.7 -0.4 2

Wholesale Trade 136.6 137.7 132.4 -1.1 4.2 -0.8 3.

Retail Trade 265.9 267.6 260.5 -1.7 5.4 -0.6 2

Transportation, Warehousing and Utilities 121.9 122.4 123.6 -0.5 -1.7 -0.4 -1Utilities 16.8 16.6 16.2 0.2 0.6 1.2 3.

Air Transportation 24.0 24.0 23.8 0.0 0.2 0.0 0.Truck Transportation 21.5 21.4 20.8 0.1 0.7 0.5 3.Pipeline Transportation 10.4 10.3 10.3 0.1 0.1 1.0 1.

Balance, incl Warehousing, Water & Rail Transport 49.2 50.1 52.5 -0.9 -3.3 -1.8 -6

Information 29.6 29.8 31.5 -0.2 -1.9 -0.7 -6Telecommunications 15.1 15.2 16.2 -0.1 -1.1 -0.7 -6

Finance & Insurance 87.2 87.7 86.8 -0.5 0.4 -0.6 0.

Real Estate & Rental and Leasing 48.2 48.1 48.4 0.1 -0.2 0.2 -0

Professional & Business Services 383.5 379.8 365.9 3.7 17.6 1.0 4.

Professional, Scientific & Technical Services 179.6 178.5 175.8 1.1 3.8 0.6 2.Legal Services 22.8 23.1 22.9 -0.3 -0.1 -1.3 -0.4

Accounting, Tax Preparation, Bookkeeping 17.2 16.9 17.0 0.3 0.2 1.8 1.2

Architectural, Engineering & Related Services 59.6 58.3 59.5 1.3 0.1 2.2 0.2

Computer Systems Design & Related Services 25.9 25.8 24.5 0.1 1.4 0.4 5.

Admin & Support/Waste Mgt & Remediation 186.0 182.6 170.7 3.4 15.3 1.9 9.

Administrative & Support Services 173.5 170.6 162.5 2.9 11.0 1.7 6.8

Employment Services 63.5 62.1 60.3 1.4 3.2 2.3 5.3

Educational Services 44.2 42.8 43.3 1.4 0.9 3.3 2.

Health Care & Social Assistance 277.7 274.1 267.8 3.6 9.9 1.3 3.

Arts, Entertainment & Recreation 26.4 28.4 27.5 -2.0 -1.1 -7.0 -4

Accommodation & Food Services 211.9 217.1 209.3 -5.2 2.6 -2.4 1.

Other Services 97.0 96.2 91.8 0.8 5.2 0.8 5.

Government 372.7 356.6 377.1 16.1 -4.4 4.5 -1.

Federal Government 27.4 27.5 28.0 -0.1 -0.6 -0.4 -2State Government 70.0 67.8 72.0 2.2 -2.0 3.2 -2.

State Government Educational Services 36.9 34.8 37.8 2.1 -0.9 6.0 -2.4

Local Government 275.3 261.3 277.1 14.0 -1.8 5.4 -0.

Local Government Educational Services 187.4 172.7 192.2 14.7 -4.8 8.5 -2.5

SOURCE: Texas Workforce Commission


10/14



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


12-MONTH

CHANGE(000)

NONFARM

PAY

ROLLEMPLOYMENT(000,000)

HOUSTON MSA EMPLOYMENT2002-2012

12-MONTH CHANGE JOBS


11/14





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


PERCENTOFLABORFORCE

UNEMPLOYMENT RATEHOUSTON & U.S. 2002-2012

HOUSTON U.S.


12/14



Source:U.S. Energy Information Administration


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 CHANGE

2002-2012

HOUSTON CPI-U U.S. CPI-U


13/14



Houston Economic Indicators

A Service of the Greater Houston Partnership

Most Year % Most Year

Month Recent Earlier Change Recent Earlier Chang

ENERGY

U.S. Active Rotary Rigs Sep '11 1,978 1,655 19.5 1,835 * 1,493 * 22

Spot Crude Oil Price ($/bbl, West Texas Intermediate) Sep '11 85.91 74.80 14.9 95.06 * 77.19 * 23

Spot Natural Gas ($/MMBtu, Henry Hub) Sep '11 3.87 3.90 -0.8 4.18 * 4.54 * -7

UTILITIES AND PRODUCTION

Houston Purchasing Managers Index Sep '11 60.8 53.6 13.4 60.1 * 54.8 * 9

Nonresidential Electric Current Sales (Mwh, CNP Service Area) Aug '11 4,623,682 4,656,313 -0.7 33,894,368 33,199,596 2

CONSTRUCTION

Total Building Contracts ($, Houston MSA) Sep '11 629,624,000 626,611,000 0.5 6,073,520,000 6,520,628,000 -6

Nonresidential Sep '11 277,085,000 317,715,000 -12.8 2,489,029,000 2,647,183,000 -6

Residential Sep '11 352,539,000 308,896,000 14.1 3,584,491,000 3,873,445,000 -7

Building Permits ($, City of Houston) Sep '11 307,947,436 243,450,311 26.5 2,595,604,015 2,470,605,659 5

Nonresidential Sep '11 200,040,910 182,664,499 9.5 1,725,266,687 1,679,697,754 2

New Nonresidential Sep '11 96,319,383 54,085,889 78.1 681,541,125 566,878,431 20.

Nonresidential Additions/Alterations/Conversions Sep '11 103,721,527 128,578,610 -19.3 1,043,725,562 1,112,819,323 -6.

Residential Sep '11 107,906,526 60,785,812 77.5 870,337,328 790,907,905 10

New Residential Sep '11 87,692,489 44,656,248 96.4 713,590,201 608,460,965 17.

Residential Additions/Alterations/Conversions Sep '11 20,214,037 16,129,564 25.3 156,747,127 182,446,940 -14.Multiple Listing Service (MLS) Activity

Closings Sep '11 5,469 4,720 15.9 48,715 47,233 3

Median Sales Price - SF Detached Sep '11 157,500 155,000 1.6 153,706 * 153,112 * 0

Active Listings Sep '11 47,812 54,027 -11.5 50,192 * 51,027 * -1

EMPLOYMENT (Houston-Sugar Land-Baytown M SA)

Nonfarm Payroll Employment Sep '11 2,605,800 2,539,500 2.6 2,575,400 * 2,519,500 * 2

Goods Producing (Natural Resources/Mining/Const/Mfg) Sep '11 503,000 473,600 6.2 489,000 * 468,500 * 4

Service Providing Sep '11 2,102,800 2,065,900 1.8 2,086,400 * 2,051,000 * 1

Unemployment Rate (%) - Not Seasonally Adjusted

Houston-Sugar Land-Baytown MSA Sep '11 8.6 8.3 8.5 * 8.5 *

Texas Sep '11 8.4 8.0 8.3 * 8.2 *

U.S. Sep '11 8.8 9.2 9.2 * 9.8 *

Unemployment Insurance Claims (Gulf Coast WDA)

Initial Claims Sep '11 18,343 20,203 -9.2 20,148 * 22,371 * -9

Continuing Claims Sep '11 73,507 89,941 -18.3 80,873 * 106,431 * -24

TRANSPORTATION

Port of Houston Authority Shipments (Short Tons) Sep '11 3,876,143 3,462,579 11.9 32,094,489 29,820,234 7

Air Passengers (Houston Airport System) Sep '11 3,794,992 3,730,955 1.7 37,556,819 37,016,309 1

Domestic Passengers Sep '11 3,223,785 3,141,759 2.6 30,979,042 30,612,742 1

International Passengers Sep '11 571,207 589,196 -3.1 6,577,777 6,403,567 2

Landings and Takeoffs Sep '11 68,447 69,305 -1.2 645,990 639,030 1

Air Freight (000 lb) Sep '11 76,175 74,539 2.2 694,597 658,004 5

Enplaned Sep '11 39,320 37,426 5.1 356,931 343,247 4

Deplaned Sep '11 36,855 37,113 -0.7 337,666 314,757 7

CONSUMERS

New Car and Truck Sales (Units, Houston MSA) Aug '11 17,682 20,196 -12.4 189,408 183,414 3

Cars Aug '11 7,095 8,420 -15.7 84,918 82,109 3

Trucks, SUVs and Commercials Aug '11 10,587 11,776 -10.1 104,490 101,305 3

Total Retail Sales ($000,000, Houston MSA, NAICS Basis) 4Q10 27,634 26,953 2.5 94,866 88,070 7

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

Houston-Galveston-Brazoria CMSA Sep '11 202.445 195.165 3.7 200.153 * 193.822 * 3United States Sep '11 226.889 218.439 3.9 224.391 * 217.775 * 3

Hotel Performance (Harris County)

Occupancy (%) 2Q11 63.0 57.4 61.8 * 57.0 *

Average Room Rate ($) 2Q11 95.37 91.67 4.0 93.65 * 91.07 * 2

Revenue Per Available Room ($) 2Q11 60.06 52.65 14.1 57.85 * 51.94 * 11

POSTINGS AND FORECLOSURES

Postings (Harris County) Oct '11 3,221 4,035 -20.2 36,122 39,072 -7

Foreclosures (Harris County) Oct '11 883 1,268 -30.4 8,851 11,770 -24

YEAR-TO-DATE

TOTAL OR YTD AVERAGE*MONTHLY DATA


14/14



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 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 StatisticsHotels PKF Consulting/Hospitality Asset

Advisors InternationalPostings, Foreclosures Foreclosure Information & Listing

Service

Documents

Houston Economy at a Glance -November 2011