DALLAS, May 2, 2019 /PRNewswire/ -- Comerica Bank's
California Economic Activity Index declined by 0.1 percent in
February to a level of 123.5. February's reading is 26 points, or
26 percent, above the index cyclical low of 97.8. The index
averaged 124.0 points in 2018, 2.8 points above the average for all
of 2017. January's reading was revised to 123.6.
Comerica Bank's California Economic Activity Index declined by
0.1 percent in February, now down for the fourth consecutive month.
Three of the eight index components posted gains in February
including nonfarm employment, state total trade and the Dow Jones
Technology Index. Five of the index components were negative for
February. They were unemployment insurance (inverted), housing
starts, house prices, industrial electricity demand, total trade
and hotel occupancy. Our California Index continues to show
sluggish economic activity heading into spring. State level labor
data remains mixed. California
continues to post steady monthly job gains. However, claims for
unemployment insurance have ticked up after hitting a cyclical low
in November. This has coincided with an increase of California's unemployment rate from 4.1
percent in December to 4.3 percent in March. Weaker housing data
has also weighed on California
economic activity, but there are signs of improvement in recent
months. According to the California Association of Realtors,
existing homes sales rebounded in February and March to around
400,000 units per month. A tight supply of existing homes for sale,
lower mortgage rates and moderating home prices will support the
market for new homes. Yet, overall low housing affordability in
California's major markets and
restrictions to development will limit the upside potential for new
home construction in 2019.
The California Economic Activity Index consists of eight
variables, as follows: nonfarm payroll employment, continuing
claims for unemployment insurance, housing starts, house price
index, industrial electricity sales, total trade, technology stock
index and hotel occupancy. All data are seasonally adjusted.
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..
To subscribe to our publications or for questions, contact us at
ComericaEcon@comerica.com. Archives are available at
http://www.comerica.com/insights. Follow us on Twitter:
@Comerica_Econ.
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SOURCE Comerica Bank