Readers concerned about the consequences of heavy dependence on a single industry are referred to other issues of Houston Business . Houston Beige Book August 2000 Good news continues to stream into Houston from the drilling industry, but signs of slower national growth are cropping up in petrochemicals and other local manufacturing. Overall, local job growth over the past six months is at a 3 percent annual rate and accelerating. Retail and Auto Sales Local retailers continue to experience sluggish sales, failing to meet projections. The tax holiday provided a nice boost to retail sales, but even this proved to be less than expected.
Retailers report it has become somewhat easier to hire entry-level workers in Houston.
Auto sales, in contrast, continue to soar, up 45 percent this July over the same month last year and up 19 percent over the first seven months of 1999. Contributing to recent strength are factory incentives, such as low interest rates, and clearance sales to reduce inventory before new models arrive. Energy Prices Energy prices heated up in recent weeks, as low inventories pushed prices sharply upward. As winter approaches, heating oil has become the key product in moving crude oil demand and oil product prices. The number of U.S. working rigs topped 1,000, spurred by natural gas exploration.