DALLAS, July 1, 2016 /PRNewswire/ -- Comerica Bank's California Economic Activity Index advanced 0.9 percentage points in April to a level of 120.6. April's reading is 37 points, or 43 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. March's index reading was 119.7.
"Our California Economic Activity Index increased in April after remaining unchanged through the first quarter of the year. Still, the April index remains close to the level established back in May 2015. The biggest weight to the index over the last year has been the tech-sector stock index, which remained below its June 2015 peak through April of this year. The most consistent positive for the overall index over the last year has been payroll job growth, which has been steady and stronger than the U.S. average. For the year ending in April, California payroll employment increased by 2.9 percent, compared to the U.S. gain of 1.9 percent," said Robert Dye, Chief Economist at Comerica Bank. "We believe that the state economy will continue to expand through the second half of this year at a moderate pace, held in check by a cooler tech-sector expansion."
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 102 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.
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SOURCE Comerica Bank