DALLAS, Aug. 27, 2019 /PRNewswire/ -- Comerica
Bank's Texas Economic Activity Index increased 0.4 percent in June
to 139.7. June'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. May's index
reading was revised to 139.1.
The Comerica Bank Texas Economic Activity Index increased for
the sixth consecutive month in June, indicating strong economic
conditions for the Lone Star State. Our Texas Index has increased
in 13 out of the last 15 months. Strong job growth is a key feature
of the Texas economy. Over the
year ending in June, Texas payroll
employment was up by 2.5 percent, well above the U.S. average of
1.5 percent. Texas added 318,000
jobs over the year, accounting for one out of seven new jobs in the
U.S. Nonfarm employment, industrial electricity demand, hotel
occupancy and state sales tax revenue were positives in June.
Unemployment insurance claims (inverted), housing starts, house
prices, rig count and total state trade were negatives. The rig
count has been a consistent negative all of this year. As of June,
the rig count was down to 467 active rigs, well below the recent
peak of 534 rigs from June 2018. WTI
crude oil prices have been on a declining trend this year since
peaking at near $64 per barrel in
mid-April. Strong production from the Permian basin and
expectations of cooling global demand growth have brought the price
for WTI down to near $54 per barrel
in late-August. This will likely result in a further easing of the
rig count this year. Total employment in the Midland, Texas metro area, the economic center
of the Permian Basin oil industry, has declined modestly since
peaking in late 2018.
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