DALLAS, Jan. 28, 2015 /PRNewswire/ -- Comerica Bank's Texas Economic Activity Index eased slightly in November, decreasing 0.2 percentage points to a level of 107.5. November's reading is 35 points, or 48 percent, above the index cyclical low of 72.6. The index averaged 100.3 points for all of 2013, two and one-tenth points above the average for full-year 2012. October's index reading was 107.7.
"After seven consecutive months of gains, our Texas Economic Activity Index dipped in November. We expect to see more evidence of the economic drag on Texas from lower oil prices in the months ahead. The Texas economy is large and diverse and it will not turn on a dime, but early indicators, including the weekly drilling rig count, are already showing the impact of the new oil price regime," said Robert Dye, Chief Economist at Comerica Bank. "We expect to see a significant reduction in oil field activity in 2015. This will lead to more layoffs in the energy sector in 2015 and reduced local demand for non-energy industries. Fortunately, the broader U.S. economy is strong and this will buffer some of the downdraft from low-priced oil."
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 135 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