DALLAS, Sept. 25, 2019 /PRNewswire/ -- Comerica
Bank's California Economic Activity Index decreased 0.1 percent in
July to a level of 124.4. July's reading was 27 points, or 27
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.
June's reading was 124.5.
Comerica Bank's California Economic Activity Index saw a slight
dip in July. This followed four consecutive monthly increases from
February to June. There were more index components down than up in
July. The three positive sub-indexes for July were nonfarm
employment, unemployment insurance claims (inverted) and total
state trade. The four negative sub-indexes for the month were
housing starts, industrial electricity demand, the Dow Jones
Technology Index and hotel occupancy. The state house price index
remained unchanged in July. The good news for California is that the state's labor market is
still generating net new jobs. Year-over-year nonfarm employment
reaccelerated following a slowdown in the pace of hiring at the end
of 2018 and into early 2019. California unemployment insurance claims have
also steadily declined from June to August. However, two proxies
for business activity in the state appear a bit soft in recent
months. California industrial
demand for electricity was down in nine of the 12 months ending in
July. California hotel occupancy
also declined for the six consecutive months ending in July.
Uncertainty in the technology sector is a wild card for our
California Index heading into the end of 2019. Increased tariffs on
consumer goods imported from China
and the rising interest in the U.S. Congress to look into the
business practices of technology companies may lead to more
disruptions for the industry.
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.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/comerica-banks-california-index-dips-300925517.html
SOURCE Comerica Bank