California Economy Slumps In December, Reports Comerica Bank's California Economic Activity Index
DALLAS, Feb. 28, 2013 /PRNewswire/ -- Comerica Bank's California Economic Activity Index slumped in December, declining 1.7 points to a level of 100.7. December's reading is 28 points, or 38 percent, above the index cyclical low of 73.2. The index averaged 102 points for all of 2012, three points above the average for all of 2011.
"After peaking mid-year, the California Economic Activity Index has declined for each of the last five months, reaching the lowest point since February 2012 in December," said Robert Dye, Chief Economist at Comerica Bank. "The only index variables notching a positive in December were building activity and tourism. December weakness was likely exaggerated by the strike which temporarily shut down southern California ports early in the month. Recent state income and sales tax increases will add to the drag from federal-level fiscal tightening in 2013."
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.
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SOURCE Comerica Bank