DALLAS, Jan. 4, 2017 /PRNewswire/ -- Comerica Bank's California Economic Activity Index grew by 1.1 percentage points in October to a level of 125.4. October's reading is 41 points, or 49 percent, above the index cyclical low of 84.1. The index averaged 119.8 points for all of 2015, six and two-fifths points above the average for all of 2014. September's index reading was 124.3.
"Our California Economic Activity Index increased again in October, completing its ninth consecutive month without a decline. Positive stock market performance through the fourth quarter of 2016 is expected to keep the California Index growing at a moderate-to-strong rate through year-end. In addition to the October increase in the NASDAQ 100 Technology Stock sub-index, other components were generally favorable. Payroll employment, state exports, housing starts, home prices and hotel occupancy were also positive contributors for the month. Unemployment insurance claims (inverted) and defense spending eased in October," said Robert Dye, Chief Economist at Comerica Bank. "We expect to see a strong dollar through 2017, supported by policies from the incoming Trump Administration. California is exposed to downside risks as a result of the potential for international trade disputes and a strong dollar; however, these risk factors may be offset by stronger domestic economic performance."
The California Economic Activity Index consists of eight variables, as follows: nonfarm payrolls, exports, hotel occupancy rates, continuing claims for unemployment insurance, housing starts, national defense spending, home prices, and the NASDAQ-100-Technology Sector Index (NDXT). 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 locations 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.
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SOURCE Comerica Bank