Will Houston ease through recession?

Written by Houston Business Journal - by Casey Wooten

Though they expect the nation to slip into a recession, nearly half of Houston executives anticipate the Bayou City will fare better than the rest of the country, according to a survey by KPMG LLP.

Sixty-two percent of local business leaders polled said the national economy is headed towards a recession. But among those polled, 46 percent said Houston's economy will avoid much of the economic malaise. Only eight percent said Houston will fare worse.

Executives echoed those feelings when asked about their own business prospects, with 73 percent anticipating improved performance over the next year, according to the survey released Friday. That number, however, is down from last year's 80 percent.

"It is reassuring to know that though Houston execs are not immune to the trying times suffered by others in the U.S., they are seeing less impact," said Edgar Giesinger, managing partner of KMPG's Houston office. "They indicate that their firms will continue to add staff and invest in technology and product development, just not at the same levels as a year ago."

Houston's most promising industries, according to the survey, are energy, healthcare and retail/distribution, the same as the previous year. Energy was far ahead of the pack, however, with 49 percent saying it would experience the most growth.

The New York-based audit, tax and advisory firm surveyed 104 executives from a diverse range of companies, both public and private.