DALLAS, Aug. 30, 2017 /PRNewswire/ -- Comerica Bank's Texas Economic Activity Index increased by 0.5 percentage points in June to a level of 99.6. June's index reading is 27 points, or 37 percent, above the index cyclical low of 72.8. The index averaged 91.2 points for all of 2016, six and three-tenths points below the average for full-year 2015. May's index reading was 99.1.
"The Comerica Bank Texas Economic Activity Index increased for the 10th consecutive month in June. Six out of eight sub-indexes increased, including nonfarm employment, state exports, unemployment insurance claims (inverted), rig count, house prices and sales tax revenues. Housing starts and hotel occupancy both declined in June. We expect the Texas Index to continue to climb through July and August reflecting ongoing momentum in the state economy. However, the Houston area, a major economic engine for the state, has been subject to catastrophic flooding because of Hurricane Harvey. This will be an enduring catastrophe for Houston, with the full ramifications not known for weeks. We expect that state and regional economic indicators will start to show the negative impact of Hurricane Harvey in the September data," said Robert Dye, Chief Economist at Comerica Bank. "We expect the Houston economy to make a strong recovery from the flooding, but there will be a profound disruption to the regional economy in the near term."
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, house 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 a local banking center network throughout Dallas-Fort Worth, Houston, Austin, San Antonio and Kerrville, 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.
SOURCE Comerica Bank