March 2014 ©2014, Greater Houston Partnership Page 1

A publication of the Greater Houston Partnership Volume 23, Number 3 March 2014

Partnership Nails Jobs Forecast — The Houston-Sugar Land-Baytown Metropolitan Sta-

tistical Area created 76,200 jobs in ’13, a 2.8 percent increase, according to the benchmark

revisions1 recently released by the Texas Workforce Commission (TWC). In December ’12,

the Partnership forecast the region would add 76,000 jobs by the end of ’13. The Partner-

ship’s forecast was off by a mere 200 jobs, essentially a rounding error for a market that now

counts more than 2.8 million payroll jobs. In ’14, the Partnership forecasts the region will

post a net gain of 69,800 jobs with growth occurring in every sector. For GHP’s ’14 forecast,

click here.

Three sectors accounted for half of all jobs added last

year—professional and business services; trade, trans-

portation, and utilities; and leisure and hospitality. Only

the finance and insurance sectors reported losses. The

revisions also showed that four sectors fared better than

first thought—dining establishments, specialty trade

contractors (e.g., plumbers, welders, electricians),

non-durable manufacturing (e.g., chemicals, plastics,

refined products, consumer perishables) and other ser-

vices (e.g., repair services, personal services, nonprof-

its).

TWC also revised annual employment data for Hous-

ton going back to the ’90s. The revisions show:

The region has created more than 364,000 jobs

since the bottom of the recession.

’12 was Houston’s best year for job creation in

more than two decades.

And growth slowed substantially in ’13.

1 Throughout the year, the TWC estimates job growth or losses based on a survey of area employers. The agency revises its estimates

each spring based on data available from unemployment insurance accounts. These “benchmark” revisions cover employment data for

the previous 21 months but often extend well beyond that.

ANNUAL JOB GROWTH – METRO HOUSTON METRO AREA Year Jobs* Year Jobs*

'91 -10,400 '03 -11,300

'92 17,700 '04 37,600

'93 43,400 '05 89,200

'94 52,900 '06 106,000

'95 51,800 '07 89,100

'96 52,400 '08 19,900

'97 105,200 '09 -108,800

'98 90,800 '10 47,300

'99 17,400 '11 80,500

'00 59,000 '12 115,400

'01 3,600 '13 76,200

'02 -3,100 '14** 69,800

*December to December * *GHP forecast Source: Texas Workforce Commission

GHP’s forecast for ’13 was off by 200 jobs, es-sentially a rounding error for a market with more than 2.8 million jobs.

March 2014 ©2014, Greater Houston Partnership Page 2

The slowing does not portend a downturn. Rather, it suggests that growth is finally returning

to normal.

More First Place Finishes — Houston led the state in job growth in ’13, with Dallas-Fort

Worth-Arlington (67,900 jobs) ranking second and Austin-Round Rock-San Marcos (34,800

jobs) ranking third. Midland led the state in growth rate (5.4 percent), followed by College

Station-Bryan (4.3 percent) and Austin-Round Rock-San Marcos (4.1 percent). Houston,

with a 2.8 percent rate, tied for fifth with Tyler and San Angelo.

NET CHANGE IN NONFARM PAYROLL EMPLOYMENT December ’12 – December ’13, Texas Metro Areas

Metro Jobs % Metro Jobs %

Houston 76,200 2.8 Longview 1,900 1.9

Dallas-Fort Worth-Arlington 67,900 2.2 Odessa 1,600 2.2

Austin-Round Rock-San Marcos 34,800 4.1 El Paso 1,500 0.5

San Antonio-New Braunfels 18,600 2.1 Abilene 1,400 2.1

Midland 4,500 5.4 San Angelo 1,300 2.8

College Station-Bryan 4,400 4.3 Victoria 1,100 2.0

Lubbock 4,000 3.0 Waco 1,100 1.0

McAllen-Edinburg-Mission 3,600 1.5 Amarillo 500 0.4

Corpus Christi 3,400 1.8 Sherman-Denison 500 1.1

Tyler 2,700 2.8 Wichita Falls 100 0.2

Brownsville-Harlingen 2,500 1.9 Beaumont-Port Arthur -900 -0.6

Killeen-Temple-Fort Hood 2,500 1.9 Texarkana -1,400 -2.5

Laredo 2,300 2.4 Source: Texas Workforce Commission

TWC released revised employment data for the state as a whole and for all metros. Between

’10 and ’13, Texas job growth proved marginally weaker than originally thought. The com-

mission revised job creation downward in two of the past four years, removing 33,000 jobs

from the four-year total. The state had 11.4 million nonfarm payroll jobs at the end of ’13,

an increase of 1.1 million (10.6 percent) since December ’09.

Dallas-Fort Worth (DFW) didn’t fare as well as Houston in the revisions. TWC reduced

DFW employment in ’12 by 20,500 jobs. The revision shifted the rankings for metro job

growth. Houston can again boast it has led the state in job growth for three consecutive years.

JOB CREATION* – TEXAS’ EIGHT MOST POPULOUS METRO AREAS

Year Texas Houston DFW Austin San An-

tonio El Paso

McAllen-Edinburg

Corpus Christi

Tem-ple-

Kileen '10 216,200 47,300 52,800 24,100 11,800 4,600 4,400 -1,000 2,100

'11 237,600 80,500 71,700 26,100 17,800 1,200 4,100 4,400 100

'12 366,400 115,400 89,000 38,500 28,300 6,300 5,900 5,600 2,400

'13 270,900 76,200 67,900 34,800 18,600 1,500 3,600 3,400 2,500

Total 1,091,100 319,400 281,400 123,500 76,500 13,600 18,000 12,400 7,100

Source: Texas Workforce Commission * December to December

March 2014 ©2014, Greater Houston Partnership Page 3

Observations follow on a few

key sectors.

Energy: Exploration and pro-

duction, oil field equipment

manufacturing, and engineer-

ing compose much of Hou-

ston’s economic base. The

base must grow for Hous-

ton’s secondary sectors (retail, restaurants, health care, government, etc.) to grow. Growth in

the base began to taper in ’12. The secondary sectors felt the impact in ’13. If the base now

settles into a sustainable pace of growth—somewhere above 3.0 percent—the secondary sec-

tors should follow suit. If the base contracts, however, the secondary sectors will eventually

contract. The bright spot is that exploration and production employment grew 7.0 percent

and engineering 5.8 percent in ’13.Oil field services, however, grew a tepid 1.7 percent.

Manufacturing: For the first time in the recovery, nondurables enjoyed healthy growth, add-

ing 3,800 jobs, outperforming durables (3,200 jobs) for the first time since the end of the

recession.

Chemicals manufacturing added 3,000 jobs over the last three years, and such growth should

continue as more plants and facilities are built to tap the inexpensive gas now available due

to horizontal drilling and hydraulic fracking. Chemicals manufacturing has a high jobs mul-

tiplier. One job in a chemical plant supports between three and 10 jobs elsewhere in the local

economy. Tudor, Pickering, Holt & Company has identified more than $40 billion in chem-

ical plant expansions and startups announced or underway along the Texas and Louisiana

Gulf Coast. This activity bodes well for Houston’s economy beyond the construction phase.

Construction: The industry lost 46,200 jobs in the recession, of which only 16,200 have been

recouped. A number of forces are pulling in opposite directions:

CBRE has identified 16.3 million square feet of office space, 7.8 million square feet of

industrial space, and 1.9 million square feet of retail space under construction. However,

developers are building only half as many homes as they did prior to the recession.

The region suffers from a shortage of residential lots to build on, yet only a handful of

lenders are willing to finance the development of more lots.

Contractors could employ more carpenters, welders and electricians—if there weren’t a

shortage of workers with the requisite skills. The Partnership is working to address the

shortage through its Regional Workforce Development Task Force.

Construction activity will remain strong in ’14 but will be impacted by the lack of lots and

skilled workers.

EMPLOYMENT GROWTH RATES, ECONOMIC BASE INDUSTRIES

Industry Annual %

'13 '12 '11 '10

Oil and Gas Extraction 7.0 7.3 10.4 4.0

Oilfield Services 1.7 9.3 18.9 13.5

Oilfield Equip Manufacturing 2.4 10.3 15.9 9.7

Architectural & Engineering 5.5 7.2 5.4 0.3

Total Nonfarm Employment 2.8 4.4 3.1 1.9

Source: GHP calculations based on Texas Workforce Commission data

March 2014 ©2014, Greater Houston Partnership Page 4

Retail: Local merchants added 27,400 jobs in the past four years, a reasonable number given

Houston’s recent population, employment and wage growth. However, last year’s growth—

5,500 jobs, 1.9 percent—was the weakest yet in the recovery. The good news is that the city

of Houston in ’13 collected $38.2 million more in sales tax, a 6.7 percent increase from ’12.

Wholesale Trade: Export growth, demand for oil field equipment, and the strong Houston

economy in general has helped this sector perform consistently over the past three years.

Wholesale trade added 6,800 jobs in ’13 and accounted for one in every 12 jobs added last

year.

Finance and Insurance: In ’13, the sector gave back half the jobs it had recouped since De-

cember ’09. Uncertainty brought on by the Dodd–Frank Wall Street Reform and Consumer

Protection Act and the trend to provide more services online continue to suppress employ-

ment growth. However, the real estate subsector has added 3,000 jobs over the past four years

and local bank deposits topped $208.0 billion as of June 30, 2013, nearly double where they

stood five years earlier.

Professional and Business Services: The weak growth in employment services, a subsector

of this industry, gives reason for concern. Growth or contraction in employment services

often portend growth or contraction in the economy as a whole. After adding 8,600 jobs in

’10, 6,300 in ’11 and 6,300 in ’12, employment services added only 900 jobs in ’13.

Health Care: Uncertainties associated with the Affordable Care Act finally appear to be im-

pacting Houston area employment. Health care and social assistance added 3,900 jobs in ’13,

the weakest job growth since ’98.

Food Services: One of the strongest performing sectors has been food services and drinking

establishments (e.g., restaurants, bars, etc.). The sector added 16,200 jobs in ’13 and 42,600

over the past four years. Houston continues to receive rave reviews in the national media for

the quality of its restaurants.

Government: The bulk of the public sector employment growth—6,300 out of 6,800 jobs

total—occurred in local government (e.g., cities, counties and school districts). The govern-

ment sector is always the last to enter the recession and one of the last to exit. That healthy

job growth has resumed suggests the economy has fully recovered.

Employment remains well below pre-recession levels in several sectors—computer manufac-

turing, construction, air transportation, finance and information. This far into the expansion, their

lackluster job growth suggests that these sectors suffer not from the aftermath of the Great Re-

cession, but from structural changes. If that’s the case, it may take several years before employ-

ment in these sectors returns to their pre-recession levels.

March 2014 ©2014, Greater Houston Partnership Page 5

Trade Roundup — The Houston-Galveston Customs District handled $252.0 billion in trade

in ’13, down 8.1 percent from $274.2 billion in ’12. Despite the drop in trade, Houston re-

mained the nation’s third busiest customs district for the ninth consecutive year, behind Los

Angeles ($414.8 billion) and New York ($378.9 billion).

Exports grew 1.6 percent from $127.1 billion in ’12 to $129.1 billion in ’13, but imports

fell 16.5 percent from $147.1 billion in ’12 to $122.9 billion in ’13. Mineral fuel and oil,

which accounts for 54.9 percent of total imports, fell 21.2 percent from $85.7 billion in ’12

to $67.5 billion in ’13. This is the lowest level of imports through Houston for mineral fuel

and oil since ’09. Unlike ’09, when the decline was due to the Great Recession, this drop

was a result of robust growth in domestic crude production from unconventional drilling in

shale plays.

The U.S. Energy Information Administration (EIA) expects strong growth in crude oil pro-

duction, primarily in the Bakken, Eagle Ford and Permian regions, to continue through ’15.

According to the EIA, the share of total U.S. liquid fuels consumption met by net imports

peaked at more than 60 percent in ’05 and fell to an average of 33 percent in ’13. The net

import share is expected to decline to 25 percent in ’15, which would be the lowest level

since ’71. As a result, import activity through Houston’s customs district may continue to

decline over the next few years.

$65.1$89.4

$104.1 $113.0

$151.0

$92.4$116.8

$148.6 $147.1$122.9

$39.5

$47.0

$58.1

$72.3

$89.9

$75.2

$94.7

$119.4 $127.1

$129.1

'04 '05 '06 '07 '08 '09 '10 '11 '12 '13

Source: U.S. Census Bureau, Foreign Trade Division

Houston-Galveston Customs District Traffic$ Billions

Imports Exports

$268.0

$211.5

$167.6

$240.9

$185.3

$162.2

$136.4

$104.6

$252.0

$274.2

March 2014 ©2014, Greater Houston Partnership Page 6

Source: U.S. Census Bureau, Foreign Trade Division

Houston’s top five imports have remained unchanged since ’04: oil, industrial machinery,

iron and steel, electrical machinery and organic chemicals. In ’13, the top five totaled $95.1

billion and accounted for three-fourths of all imports. Since ’04, their value has risen from

$65.1 billion to $122.9 billion in ’13, a 7.3 percent annual growth rate.

Top 5 Imports Through Houston-Galveston Customs District, ’04-’13 ($ billions)

Import Commodity '04 '05 '06 '07 '08 '09 '10 '11 '12 '13

Mineral Fuel and Oil 40.5 57.5 64.1 70.6 98.9 57.9 76.9 96.7 85.6 67.4

Industrial Machinery 3.7 5.1 6.9 7.8 9.1 7.9 7.9 8.7 10.4 9.1

Articles of Iron or Steel 2.2 3.7 5.2 5.8 10.6 5.4 5.2 7.7 10.0 7.9

Electric Machinery 1.3 2.3 3.2 3.9 4.7 3.5 4.2 7.2 6.4 5.3

Organic Chemicals 2.3 3.4 3.6 3.8 4.3 2.4 3.6 4.6 4.8 5.1

All Other Commodities 14.9 17.2 20.9 20.9 23.2 15.0 18.6 23.5 29.6 27.7

Total Imports 65.1 89.4 104.0 112.9 150.9 92.4 116.7 148.6 147.1 122.9

Source: U.S. Census Bureau, Foreign Trade Division

In contrast, Houston’s exports have increased at nearly double the pace of imports, growing

at an annual rate of 14.1 percent from $39.5 billion in ’04 to $129.1 billion in ’13. The

future of exports out of the customs district depends largely on the health of the economies

of its trade partners. In ’13, Houston’s top 20 trade partners accounted for 68.6 percent of

exports. The GDP growth rate of 13 of the top 20 trade partners is forecasted to be stronger

this year than it was in ’13, suggesting a positive outlook for the district’s export growth.

0

20

40

60

80

100

120

140

160

'04 '05 '06 '07 '08 '09 '10 '11 '12 '13

$, b

illio

ns

Import Value Growth Through Houston-Galveston Customs District

All Other

Organic Chemicals

Electric Machinery

Articles of Iron or Steel

Industrial Machinery

Mineral Fuel and Oil

March 2014 ©2014, Greater Houston Partnership Page 7

HOUSTON’S TOP 20 EXPORT DESTINATIONS

Rank Country Export Value

$ Billions % of Total

Forecasted GDP Growth in ’14

(%) 1 Mexico 13.420 10.4 3.0

2 Brazil 9.736 7.5 2.5

3 Netherlands 8.136 6.3 0.3

4 Colombia 6.687 5.2 4.2

5 Venezuela 5.200 4.0 1.7

6 China 4.731 3.7 7.3

7 Chile 4.695 3.6 4.5

8 Belgium 3.486 2.7 1.0

9 Singapore 3.280 2.5 3.4

10 Peru 3.213 2.5 5.7

11 United Kingdom 2.879 2.2 1.9

12 South Korea 2.832 2.2 3.7

13 Saudi Arabia 2.817 2.2 4.4

14 Canada 2.738 2.1 2.2

15 France 2.679 2.1 1.0

16 Nigeria 2.654 2.1 7.4

17 Argentina 2.627 2.0 2.8

18 Ecuador 2.328 1.8 4.0

19 Panama 2.227 1.7 6.9

20 U.A.E. 2.219 1.7 3.9

- All Other 40.498 31.4 -

Total 129.092 100% -

Source: U.S. Census Bureau, Foreign Trade Division and the IMF

Flight Update — Traffic through the Houston Airport System (HAS) grew 3.1 percent from

3.9 million in January ’13 to 4.0 million in January ’14. International passenger traffic rose 8.8

percent from 731,594 in January ’13 to 795,962 in January ’14. January is the second consec-

utive month of exceptional year-over-year growth in international traffic, following an 8.9

percent increase from December ’12 to December ’13. Large year-over-year increases are

expected for the first few months of ’14 as the data reflect last year’s launch of nonstop routes

to Istanbul in April and Beijing in July.

Domestic travel increased 1.8 percent from 3.17 million in January ’13 to 3.23 million in Jan-

uary ’14. Hobby Airport continues to drive the growth in domestic passengers. Although

Hobby represents only a quarter of domestic travel through Houston, it accounts for all of its

growth. Intercontinental Airport experienced a 0.7 percent decline in domestic traffic from

January ’13 to January ’14, while Hobby grew by 8.5 percent over the same period.

March 2014 ©2014, Greater Houston Partnership Page 8

SNAPSHOT — HOUTON’S KEY ECONOMIC INDICATORS

Building Permits — City of Houston building permits reached an all-time high in January.

For the 12 months ending January ’14, the city issued building permits totaling $6.2 billion,

surpassing the pre-recession peak of $6.0 billion in October ’08. The January 12-month total

was also a 25.5 percent increase over the $5.0 billion issued during the 12 months ending

January ’13. Residential permits increased 31.1 percent from $1.8 billion to $2.4 billion and

nonresidential permits increased 22.2 percent from $3.1 billion to $3.9 billion.

Inflation — The Consumer Price Index for All Urban Consumers (CPI-U) grew 1.6 percent

nationwide from January ’13 to January ’14. Core inflation rose 1.6 percent over that period.

The energy index increased 2.1 percent, food prices grew 1.1 percent, and the shelter index

rose 2.4 percent.

Home Sales — Houston-area realtors sold 89,050 homes in the 12 months ending January ’14,

an 18.4 percent increase over the 75,205 homes sold in the 12 months ending January ’13,

according to the Houston Association of REALTORS® (HAR). Total sales volume approached

$21.4 billion in the 12 months ending January ’14, a 31.5 percent increase over the $16.3

billion recorded in the 12 months ending January ’13, and the highest 12-month sales volume

on record.

Purchasing Managers Index — The Houston Purchasing Managers Index (PMI), a short-

term leading indicator for regional production, registered 58.7 in February, up from 57.1in

January, according to the latest report from the Institute for Supply Management-Houston. The

PMI has a possible range from zero to 100. Readings above the neutral point of 50 indicate

likely growth in production over the next three to four months; readings below 50 suggest

contraction. With the February reading, the PMI has held at or above 50 for 54 consecutive

months.

Vehicle Sales — Houston-area auto dealers sold 345,874 vehicles in the 12 months ending

January ’14, up 6.7 percent from the 324,256 sold in the 12 months ending January ’13, ac-

cording to TexAuto Facts, published by InfoNation, Inc. of Sugar Land. InfoNation forecasts

360,000 new vehicles to be sold in the Houston area in ’14.

Patrick Jankowski and Jenny Phillip contributed to this issue of

Houston: The Economy at a Glance

March 2014 ©2014, Greater Houston Partnership Page 9

STAY UP TO DATE!

Are you a GHP Member? If so, log in to your account here and access archived issues of Glance available only to Members. You can also sign-up RSS feeds to receive Houston’s latest economic data throughout the month. If you are a nonmember and would like to receive this electronic publication on the first working day of each month, please email your request for Economy at a Glance to dmorrow@houston.org. Include your name, title and phone number and your company’s name and address. For information about joining the Greater Houston Partnership and gaining access to this powerful resource, call Member Services at 713-844-3683. The Key Economic Indicators table is updated whenever any data change — typically, 11 or so times per month. If you would like to receive these updates by e-mail, usually accompanied by commentary, please email your request for Key Economic Indicators to dmorrow@houston.org with the same identifying information. You may request Glance and Indicators in the same email.

Follow me on Twitter @PNJankowski

Subscribe to my blog The Glass Half Full

also posted at www.hou-ston.org/economy

HOUSTON—THE ECONOMY AT A GLANCE

March 2014 ©2014, Greater Houston Partnership Page 10

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

Dec '13 Dec '12 Dec '12 Dec '12

Total Nonfarm Payroll Jobs 2,840.1 2,763.9 76.2 2.8

Total Private 2,461.7 2,392.3 69.4 2.9

Goods Producing 551.9 535.9 16.0 3.0

Service Providing 2,288.2 2,228.0 60.2 2.7

Private Service Providing 1,909.8 1,856.4 53.4 2.9

Mining and Logging 107.4 103.1 4.3 4.2

Oil & Gas Extraction 59.9 56.0 3.9 7.0

Support Activities for Mining 46.8 46.0 0.8 1.7

Construction 188.9 184.2 4.7 2.6

Manufacturing 255.6 248.6 7.0 2.8

Durable Goods Manufacturing 171.5 168.3 3.2 1.9

Nondurable Goods Manufacturing 84.1 80.3 3.8 4.7

Wholesale Trade 153.8 147.5 6.3 4.3

Retail Trade 298.4 292.9 5.5 1.9

Transportation, Warehousing and Utilities 135.0 131.1 3.9 3.0

Utilities 16.1 16.1 0.0 0.0

Air Transportation 23.3 22.8 0.5 2.2

Truck Transportation 24.2 23.4 0.8 3.4

Pipeline Transportation 9.5 9.3 0.2 2.2

Information 32.9 32.0 0.9 2.8

Telecommunications 15.1 14.3 0.8 5.6

Finance & Insurance 89.1 90.7 -1.6 -1.8

Real Estate & Rental and Leasing 52.1 51.3 0.8 1.6

Professional & Business Services 431.0 420.8 10.2 2.4

Professional, Scientific & Technical Services 207.6 200.8 6.8 3.4

Legal Services 24.1 24.1 0.0 0.0

Accounting, Tax Preparation, Bookkeeping 21.2 20.4 0.8 3.9

Architectural, Engineering & Related Services 71.0 67.3 3.7 5.5

Computer Systems Design & Related Services 30.5 28.6 1.9 6.6

Admin & Support/Waste Mgt & Remediation 199.0 196.0 3.0 1.5

Administrative & Support Services 188.4 186.6 1.8 1.0

Employment Services 73.3 72.4 0.9 1.2

Educational Services 50.9 48.7 2.2 4.5

Health Care & Social Assistance 289.2 285.3 3.9 1.4

Arts, Entertainment & Recreation 27.6 26.5 1.1 4.2

Accommodation & Food Services 250.3 232.9 17.4 7.5

Other Services 99.5 96.7 2.8 2.9

Government 378.4 371.6 6.8 1.8

Federal Government 27.4 27.5 -0.1 -0.4

State Government 72.8 72.2 0.6 0.8

State Government Educational Services 39.2 39.1 0.1 0.3

Local Government 278.2 271.9 6.3 2.3

Local Government Educational Services 194.2 191.0 3.2 1.7

SOURCE: Texas Workforce Commission

HOUSTON—THE ECONOMY AT A GLANCE

March 2014 ©2014, Greater Houston Partnership Page 11

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 Feb '14 1,769 1,756 0.7 1,769 * 1,756 * 0.7

Spot Crude Oil Price ($/bbl, West Texas Intermediate) Feb '14 101.43 95.56 6.1 97.77 * 94.97 * 2.9

Spot Natural Gas ($/MMBtu, Henry Hub) Feb '14 5.63 3.27 72.2 5.05 * 3.30 * 53.0

UTILITIES AND PRODUCTION

Houston Purchasing Managers Index Feb '14 58.7 64.2 -8.6 57.9 * 60.0 * -3.5

Nonresidential Electric Current Sales (Mwh, CNP Service Area) Jan '14 4,202,519 3,931,483 6.9 4,202,519 3,931,483 6.9

CONSTRUCTION

Total Building Contracts ($, Houston MSA) Dec '13 800,345,000 916,420,000 -12.7 11,708,477,000 11,243,480,000 4.1

Nonresidential Dec '13 256,980,000 322,143,000 -20.2 3,502,965,000 4,072,056,000 -14.0

Residential Dec '13 543,365,000 594,277,000 -8.6 8,205,512,000 7,171,424,000 14.4

Building Permits ($, City of Houston) Jan '14 580,228,831 479,807,585 20.9 580,228,831 479,807,585 20.9

Nonresidential Jan '14 373,754,501 343,133,342 8.9 373,754,501 343,133,342 8.9

New Nonresidential Jan '14 177,555,227 171,985,472 3.2 177,555,227 171,985,472 3.2

Nonresidential Additions/Alterations/Conversions Jan '14 196,199,274 171,147,870 14.6 196,199,274 171,147,870 14.6

Residential Jan '14 206,474,330 136,674,243 51.1 206,474,330 136,674,243 51.1

New Residential Jan '14 189,809,880 119,567,794 58.7 189,809,880 119,567,794 58.7

Residential Additions/Alterations/Conversions Jan '14 16,664,450 17,106,449 -2.6 16,664,450 17,106,449 -2.6

Multiple Listing Service (MLS) Activity

Property Sales Jan '14 4,929 4,667 5.6 4,929 4,667 5.6

Median Sales Price - SF Detached Jan '14 177,000 150,000 18.0 177,000 * 150,000 * 18.0

Active Listings Jan '14 28,211 33,532 -15.9 28,211 * 33,532 * -15.9

EMPLOYMENT (Houston-Sugar Land-Baytown MSA)

Unemployment Rate (%) - Not Seasonally Adjusted

Houston-Sugar Land-Baytown MSA Jan '14 5.6 6.9 5.6 * 6.9 *

Texas Jan '14 5.8 7.0 5.8 * 7.0 *

U.S. Jan '14 7.0 8.5 7.0 * 8.5 *

FOREIGN TRADE (Houston-Galveston Customs District)

Port of Houston Authority Shipments (Short Tons) Jan '14 3,793,302 3,452,233 9.9 3,793,302 3,452,233 9.9

Air Passengers (Houston Airport System) Jan '14 4,024,607 3,902,378 3.1 4,024,607 3,902,378 3.1

Domestic Passengers Jan '14 3,228,645 3,170,784 1.8 3,228,645 3,170,784 1.8

International Passengers Jan '14 795,962 731,594 8.8 795,962 731,594 8.8

Landings and Takeoffs Jan '14 67,345 64,246 4.8 67,345 64,246 4.8

Air Freight (metric tons) Jan '14 33,417 33,858 -1.3 33,417 33,858 -1.3

Enplaned Jan '14 18,374 17,406 5.6 18,374 17,406 5.6

Deplaned Jan '14 15,043 16,452 -8.6 15,043 16,452 -8.6

CONSUMERS

New Car and Truck Sales (Units, Houston MSA) Jan '14 24,991 26,976 -7.4 24,991 26,976 -7.4

Total Retail Sales ($000,000, Houston MSA, NAICS Basis) 4Q12 30,682 30,792 -0.4 107,511 100,873 6.6

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

Houston-Galveston-Brazoria CMSA Jan '14 209.8 202.5 3.6 207.600 * 204.200 * 1.7

United States Jan '14 233.916 230.28 1.6 233.916 * 230.280 * 1.6

Hotel Performance (Houston MSA)

Occupancy (%) 3Q13 68.0 64.4 70.1 * 66.4 *

Average Room Rate ($) 3Q13 98.70 89.70 10.0 101.36 * 94.02 * 7.8

Revenue Per Available Room ($) 3Q13 67.12 57.74 16.2 71.06 * 62.50 * 13.7

POSTINGS AND FORECLOSURES

Postings (Harris County) Dec '13 1,310 2,061 -36.4 18,976 34,730 -45.4

Foreclosures (Harris County) Dec '13 403 678 -40.6 5,419 9,993 -45.8

YEAR-TO-DATE TOTAL or

YTD AVERAGE*MONTHLY DATA

HOUSTON—THE ECONOMY AT A GLANCE

March 2014 ©2014, Greater Houston Partnership Page 12

Sources Rig Count Baker Hughes Incorporated Spot WTI, Spot Natural Gas U.S. Energy Information Admin. Houston Purchasing Managers National Association of Index Purchasing Management – Houston, Inc. Electricity CenterPoint Energy Building Construction Contracts McGraw-Hill Construction City of Houston Building Permits Building Permit Department, City of Houston MLS Data Houston Association of

Realtors Employment, Unemployment Texas Workforce Commission

Port Shipments Port of Houston Authority Aviation Aviation Department, City of Houston Car and Truck Sales TexAuto Facts Report,

InfoNation, Inc., Sugar Land TX Retail Sales Texas Comptroller’s Office Consumer Price Index U.S. Bureau of Labor Statistics Hotels PKF Consulting/HospitalityAsset Advisors International Postings, Foreclosures Foreclosure Information &Listing Servi

HOUSTON—THE ECONOMY AT A GLANCE

March 2014 ©2014, Greater Houston Partnership Page 13

-150

-120

-90

-60

-30

0

30

60

90

120

150

2,000

2,100

2,200

2,300

2,400

2,500

2,600

2,700

2,800

2,900

3,000

'04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14

12

-Mo

nth

Ch

ange

(0

00

)

No

nfa

rm P

ayro

ll Em

plo

yme

nt

(00

0)

Source: Texas Workforce Commission

Nonfarm Payroll Employment, Houston MSA

12-Month Change Total Payroll Employment

1,800

1,850

1,900

1,950

2,000

2,050

2,100

2,150

2,200

2,250

2,300

420

460

500

540

580

620

'04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14

Serv

ice

-Pro

vid

ing

Job

s (0

00

s)

Go

od

s-P

rod

uci

ng

Job

s (0

00

s)

Source: Texas Workforce Commission

Goods-Producing and Service-Providing EmploymentHouston MSA

Goods-Producing Jobs Service-Providing Jobs

HOUSTON—THE ECONOMY AT A GLANCE

March 2014 ©2014, Greater Houston Partnership Page 14

3

4

5

6

7

8

9

10

11

'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

% C

ivili

an L

abo

r Fo

rce

Source: Texas Workforce Commission

Unemployment Rate - Houston, Texas and U.S.

Houston Texas U.S.

0

2

4

6

8

10

12

14

16

0

20

40

60

80

100

120

140

160

'04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Nat

ura

l Gas

, $ /

mcf

WTI

, $ b

arre

l

Source: U.S. Energy Information Administration

Spot Crude and Natural Gas PricesMonthly Averages

WTI Natural Gas