DALLAS, Aug. 29, 2012 /PRNewswire/ -- Comerica Bank's California Economic Activity Index was essentially flat in June, edging 0.2 points lower, to a level of 103.4. June's reading is 30 points, or 41 percent, above the index cyclical low of 73.2. Year-to-date the index has averaged 101, two points above the average for all of 2011.
"The California economy was flat in June, following a surge in May, according to our California Economic Activity Index," said Robert Dye, Chief Economist at Comerica Bank. "Private-sector job growth continues to improve, and housing markets are looking firmer. State fiscal conditions remain challenging, which is adding to the stress on some municipalities. Facebook's poor market performance since its IPO in May has weighed heavily on Silicon Valley stock prices, and is adding to state tax revenue issues."
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. Follow Comerica Chief Economist Robert Dye on Twitter at @Comerica_Econ.