Gulf Coast refineries have been running at capacity utilization rates close to 100 percent in recent weeks. Services Demand for business services, such as legal, accounting and consulting, continued to be strong, even though many contacts reported soft demand from clients at energy-related firms and in agricultural areas. Some companies that supply temporary workers say they still have more orders than people to fill them, including in Houston. The strongest demand for temporary workers is for systems programmers and to staff call centers and computer manufacturers. While many firms remain optimistic about the outlook, contacts remain wary, citing potential problems for the coming year, such as the Euro, the Asian economy and the stock market.
Most contacts expect slower growth in activity in Houston.
Sales activity was particularly strong during the week following Christmas. Competition was stiff and price discounting was greater than last year, but contacts said inventories are now in good shape. Prices for apparel products are expected to fall further over the next few months. Auto sales continued to be strong, with inventories in good shape. Dealers said selling prices are roughly the same for some models and down 1 percent for others compared to a year ago, because manufacturers have lowered prices for some vehicles.