DALLAS, Oct. 4, 2011 /PRNewswire/ --
Comerica Bank's California Economic Activity Index fell one point
in July, to a level of 101. July's reading is three points
below the 104 average for all of 2010, and seven percent above the
index cyclical low. Year-to-date the index has averaged 103.
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"The California economy
continues to struggle for traction," said Robert Dye, Chief Economist at Comerica Bank.
"Consumer spending remains fundamentally constrained by a weak
housing market and a downshift in global macroeconomic expectations
is keeping hiring tentative. With the odds of a U.S. recession
before the end of 2012 now near 50 percent, the California economy is on the bubble. The
steady decline in our California
index over the last five months is an ominous sign. A resurgent
Silicon Valley remains a bright spot for the state economy but some
high-tech industries are vulnerable to cooler markets and new
restraints to government spending."
The California Economic Activity Index equally weighs nine,
seasonally-adjusted coincident indicators of real economic
activity. These indicators reflect activity in the
manufacturing, travel and trade sectors, as well as job growth and
consumer outlays. The Index levels represent a three-month
moving average, used to smooth monthly volatility. The Index
is benchmarked so that 2008 equals 100.
Comerica Bank, with 104 banking centers 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 receive this index directly to your email inbox, go to
www.comerica.com/econsubscribe to subscribe.
SOURCE Comerica Bank