California Economy Grows In July, Reports Comerica Bank's California Economic Activity Index
DALLAS, Sept. 25, 2012 /PRNewswire/ -- Comerica Bank's California Economic Activity Index rose nearly two points in July, increasing by 1.8 points, to a level of 105.2. July's reading is 32 points, or 44 percent, above the index cyclical low of 73.2. Year-to-date the index has averaged 102, three points above the average for all of 2011.
"Following a flat reading this June, the California economy climbed to its highest level since June 2008, according to our July California Economic Activity Index," said Robert Dye, Chief Economist at Comerica Bank. "Private-sector job growth is improving gradually, and housing markets are looking firmer. State fiscal conditions remain challenging, adding to the stress on some municipalities. Facebook's disappointing IPO is weighing on Silicon Valley stock prices, and is a contributing factor to state tax revenue shortfalls."
The California Economic Activity Index consists of eight variables, as follows: nonfarm payrolls, exports, sales tax revenues, hotel occupancy rates, continuing claims for unemployment insurance, building permits, Baker Hughes rotary rig count and the Silicon Valley 150 Index (SV150). All data are seasonally adjusted, as necessary, and indexed to a base year of 2008. Nominal values have been converted to constant dollar values. Index levels are expressed in terms of three-month moving averages.
Comerica Bank, with 105 banking centers in the key California markets of San Francisco and the East Bay, San Jose, Los Angeles, Orange County, San Diego, Fresno, Sacramento, Santa Cruz/Monterey, and the Inland Empire, is a subsidiary of Comerica Incorporated (NYSE: CMA). Comerica is a financial services company headquartered in Dallas, Texas, and strategically aligned into three major business segments: the Business Bank, the Retail Bank, and Wealth Management. Comerica focuses on relationships and helping businesses and people be successful. To find Comerica on Facebook, please visit www.facebook.com/ComericaCares. Follow Comerica Chief Economist Robert Dye on Twitter at @Comerica_Econ.
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SOURCE Comerica Bank