DALLAS, Aug. 2, 2019 /PRNewswire/ -- Comerica Bank's
Texas Economic Activity Index grew 0.8 percent in May to 139.0.
May's index reading is 44 points, or 46 percent, above the index
cyclical low of 95.5. The index averaged 134.6 points for all of
2018, 5.7 points above the average for 2017. April's index reading
was revised to 137.9.
The Comerica Bank Texas Economic Activity Index increased for
the fifth consecutive month in May, consistent with an ongoing
moderate-to-strong GDP expansion for the state in 2019. Recent job
growth has accelerated. April and May saw net job gains of around
32,000 for Texas, noticeably above the average of around
20,000 per month from November through March. For the year ending
in May, Texas payrolls were up by
2.4 percent, well ahead of the U.S. average of 1.6 percent. Payroll
employment has been a positive for the Texas Index for 20
consecutive months. Other positives in May were unemployment
insurance claims (inverted), housing starts, industrial electricity
demand, total state trade, hotel occupancy and state sales tax
revenues. House prices and the drilling rig count were negative
factors in May. Even though oil production remains strong, the
Texas rig count has been on a
declining trend since peaking at 540 rigs last October. The latest
numbers, for the end of July, show a steep decline to 454 rigs.
Despite increasing military tension in the Persian Gulf, crude oil
prices remain fairly stable in the range of $55 to $60 dollars
per barrel for West Texas Intermediate crude. However, concerns
about a cooling global economy are weighing on demand forecasts.
Manufacturing indicators are in contraction for Europe and parts of Asia.
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