DALLAS, June 4, 2019 /PRNewswire/ -- Comerica Bank's
Texas Economic Activity Index grew 0.2 percent in March to 137.2.
March's index reading is 42 points, or 44 percent, above the index
cyclical low of 95.5. The index averaged 134.5 points for all of
2018, 5.6 points above the average for 2017. February's index
reading was revised to 137.2.
The Comerica Bank Texas Economic Activity Index ticked up in
March, registering its third consecutive monthly gain. The last
time that the Texas Index declined was in July 2018. Over the last 12 months, the headline
index is up 3.6 percent. The year-over-year gain appears to be on
an improving trend after bottoming out in late 2018. In March, six
out of nine index components were positive. They were nonfarm
payrolls, house prices, industrial electricity demand, total state
trade, hotel occupancy and state sales tax revenue. The negative
factors were unemployment insurance claims (inverted), housing
starts and the rig count. The strong performance of the Texas Index
over the past two-and-a-half years indicates that the state has
good momentum both in and out of the energy industry. Energy is a
key economic driver for the state, but the majority of Texas economic activity is not directly
related to the energy sector. We expect the state to continue to
attract businesses and to attract new workers. We estimate
population growth for the state to be around 1.4 percent this year,
about double the national average pace. Strong demographic momentum
will remain a tailwind for the state's non-energy economy and spur
growth in "people" industries. An example of that growth is seen in
DFW Airport's recent announcement
that it will add a sixth terminal with 24 new gates as early as
2025.
The Texas Economic Activity Index consists of nine variables, as
follows: nonfarm payroll employment, continuing claims for
unemployment insurance, housing starts, house price index,
industrial electricity sales, Texas rotary rig count, total trade, hotel
occupancy and sales tax revenue. All data are seasonally adjusted.
Nominal values have been converted to constant dollar values. Total
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.
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