Editor’s note: In its “Economy at a Glance” report for July, the Greater Houston Partnership – the regional chamber of commerce – examines the current state of Houston’s economy, including trends in employment, energy, construction, foreign trade, home sales, apartment leasing and vehicle sales.
The Houston area’s economy has continued to grow through the first five months of 2025 – but at a slower pace than in previous years. This aligns with national trends as the U.S. economy grows but uncertainty and rising material costs are leading businesses to take a cautious posture.
Examples of ongoing trends in Houston include:
- Payroll employment is down since the start of the year, with tepid hiring and moderate losses in the professional service sector.
- The unemployment rate remains low, but initial jobless claims are on the rise.
- Readings from the Houston Purchasing Managers Index (PMI) suggest the economy is growing at a slower pace.
- Local sales and use tax collections are up, indicating that spending has been robust.
- International trade has declined in dollar terms, though container volume in Port Houston is up.
- Low oil prices are depressing activity in energy.
- Construction contracts and air travel are down compared to last year.
- Home sales and apartment occupancy are up relative to 2024.
- New vehicle sales are breaking records.
Employment…