DALLAS, Jan. 5, 2016 /PRNewswire/ -- Comerica Bank's Texas Economic Activity Index fell in October, decreasing 0.7 percentage points to a level of 94.8. October's reading is 22 points, or 30 percent, above the index cyclical low of 72.8. The index averaged 105.2 points for all of 2014, four and nine-tenths points above the average for full-year 2013. September's index reading was 94.8.
"Our Texas Economic Activity Index eased again in October, after a small gain in September. The October dip is a reminder that the Texas economy is not yet out of the woods in terms of the drag from reduced oil field activity. We should also note that the price of oil has dropped substantially since October, when the average price of West Texas intermediate crude was $46.22 per barrel. Current prices, in the vicinity of $36 per barrel, suggest we are in for another leg down for the Texas energy sector," said Robert Dye, Chief Economist at Comerica Bank. "As we turn the calendar to 2016, the stress on the Texas energy sector, and therefore on the entire Texas economy, enters a new phase. We expect to see ongoing reductions and consolidations in the oil patch through mid-year."
The Texas Economic Activity Index consists of eight variables, as follows: nonfarm payrolls, exports, hotel occupancy rates, continuing claims for unemployment insurance, housing starts, sales tax revenues, home prices, and the Baker Hughes rotary rig count. 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 is a subsidiary of Comerica Incorporated (NYSE: CMA), the largest U.S. commercial bank headquartered in Texas, strategically aligned by three business segments: The Business Bank, The Retail Bank, and Wealth Management. Comerica focuses on relationships, and helping people and businesses be successful. In addition to 133 banking centers in Dallas/Fort Worth, Houston, Austin, San Antonio and Kerrville regions of Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico. To find Comerica on Facebook, please visit www.facebook.com/ComericaCares.
SOURCE Comerica Bank