DALLAS, Jan. 8, 2015 /PRNewswire/ -- Comerica Bank's Texas Economic Activity Index grew in October, increasing 0.5 percentage points to a level of 107.8. October'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. September's index reading was 107.3.
"The Texas economy expanded at a robust rate into the fourth quarter of 2014, as shown by our Texas Economic Activity Index for October. Seven out of eight components of the index improved in October, including payroll employment, which was up a strong 3.7 percent over the previous 12 months. However, lower oil prices are a game changer for Texas. During October, the price of West Texas Intermediate crude oil was in the mid-$80 per barrel range and we were not yet seeing signs of decreasing drilling activity in the state. The rig count was stable from August through October of last year," said Robert Dye, Chief Economist at Comerica Bank. "With WTI now down to less than $50 per barrel, we are seeing a significant slowdown in oil field activity and this will be a drag on Texas economic activity in 2015."
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