Comerica Bank's California Index Dips in January
DALLAS, March 24, 2014 /PRNewswire/ -- Comerica Bank's California Economic Activity Index declined in January, down 1.6 percentage points to a level of 110.1. January's reading is 37 points, or 51 percent, above the index cyclical low of 72.7. The index averaged 106 points for all of 2013, five points above the average for all of 2012. December's index reading was revised slightly up from 111.4 to 111.7.
"Our California Economic Activity Index dipped in January as most index components eased. Payroll job growth in California has temporarily stalled, showing little change from November through January. Residential building permits also eased in January after solid gains over the previous three months," said Robert Dye, Chief Economist at Comerica Bank. "Increasing private construction activity and firming property prices are a fundamental positive for California. Also, the tech sector continues to be a strong performer. The Silicon Valley 150 stock index was up 17 percent in January over the previous 12 months. We expect the California economy to improve through 2014."
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.
SOURCE Comerica Bank