DALLAS, July 29, 2015 /PRNewswire/ -- Comerica Bank's Texas Economic Activity Index eased again in May, decreasing 2.0 percentage points to a level of 96.6. May's reading is 24 points, or 32 percent, above the index cyclical low of 72.9. The index averaged 105.2 points for all of 2014, four and nine-tenths points above the average for full-year 2013. April's index reading was 98.6.
"Our Texas Economic Activity Index declined again in May, for the seventh consecutive month, showing the ongoing drag on the state economy from lower oil prices. Our index data extends through May, limited by the release of house price data. The recent drop in the price of West Texas Intermediate crude oil from near $60 per barrel in May and June, to now approaching $47 per barrel, is not reflected in our May Index. The drilling rig count for Texas stabilized in June and picked up slightly in early July, as drillers felt more confident that $60 oil was profitable," said Robert Dye, Chief Economist at Comerica Bank. "Now with oil prices taking another leg down, we expect the drilling rig count to fall further and consolidation in the state's energy sector to continue."
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