Comerica Bank's California Index Boosted by Tech Sector

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Nov 30, 2016, 04:45 ET

DALLAS, Nov. 30, 2016 /PRNewswire/ -- Comerica Bank's California Economic Activity Index increased by 1.6 percentage points in September to a level of 124.3. September's reading is 40 points, or 48 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. August's index reading was 122.7.

"Our California Economic Activity Index increased in September, indicating that the California economy accelerated at the end of the third quarter. The California Index has now increased for six consecutive months. Seven out of eight index components improved in September. They were nonfarm employment, state exports, claims for unemployment insurance (inverted), defense spending, house prices, hotel occupancy and the NASDAQ 100 Technology Stock index. Only housing starts dipped for the month. The uptick in California economic activity is consistent with solid third quarter U.S. GDP growth. We expect the state to continue to show good momentum through the end of this year and into early next year," said Robert Dye, Chief Economist at Comerica Bank. "House prices were stronger than expected in September. According to the Case-Shiller data, Los Angeles house prices increased by a solid 0.5 percent in September, after seasonal adjustment. San Francisco prices were up by 0.3 percent. San Diego house prices also gained 0.3 percent for the month."

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