DALLAS, Aug. 26, 2015 /PRNewswire/ -- Comerica Bank's Texas Economic Activity Index eased in June, decreasing 0.6 percentage points to a level of 96.0. June's reading is 23 points, or 32 percent, above the index cyclical low of 72.9. The index averaged 105.1 points for all of 2014, four and four-fifths points above the average for full-year 2013. May's index reading was 96.6.
"Our Texas Economic Activity Index declined moderately in June, marking the eighth straight monthly drop. While it is obvious that low oil prices are having an impact on the Texas economy, it is also noteworthy that recent labor data shows that total payroll employment in the state has so far declined in only one month this year, March. In April, May, June and July, Texas saw net job gains. Other components of our index are showing consistent losses, including unemployment insurance claims (inverted), rig count, sales tax and hotel occupancy. The data show the nuances in Texas. The energy sector is a major component of the Texas economy, but oil is not the whole story. The state economy has shown resiliency in the early days of the dramatic collapse of oil prices," said Robert Dye, Chief Economist at Comerica Bank. "That said, our June index does not include the drop in oil prices to below $40 per barrel. This will undoubtedly increase the stress on the Texas energy sector, and the whole state economy."
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