DALLAS, July 29, 2020 /PRNewswire/ -- Comerica
Bank's Michigan Economic Activity Index declined in May to a level
of 90.3. May's reading marks a new historical low for the index.
The index averaged 117.7 points for all of 2019, 0.9 points below
the index average for 2018. April's index reading was revised to
102.4.
Our state economic activity indexes for May show the historic
decline in economic activity this spring due to the coronavirus
pandemic. The Michigan economy was
hit particularly hard as auto production ground to a near halt in
April, which is still impacting our May Index. Eight out of nine
sub-indexes declined in May for Michigan. They were nonfarm employment,
unemployment insurance claims (inverted), housing starts,
industrial electricity demand, light vehicle production, total
state trade, hotel occupancy and state sales tax revenue. As in
April, the only monthly increase came from the house price index.
We again note that house price data for Michigan has been limited this spring, and so
we are making estimates that may be revised later. Vehicle
production resumed in May after a near halt in April. June saw a
further increase in auto and light truck production to an 8.3
million unit annual rate, still well below the 10.6 million unit
average rate for 2019. U.S. auto sales have improved since
bottoming out at a 9.0 million unit annual rate in in April. June
saw an increase to a 12.7 million unit sales rate. Total sales for
2019 were 17.0 million units. Michigan is among the large group of states
that saw an increase in coronavirus infections through July. As a
result, Governor Whitmer extended her emergency declaration through
August 11, limiting public gatherings
and service at bars. We expect to see improvement in the Michigan
Index in the next few months, but the index will likely not return
to its pre-crisis level this year.
The Michigan 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, auto assemblies, total trade, hotel
occupancy and sales tax revenue. 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 Incorporated (NYSE: CMA) is a financial services
company headquartered in Dallas,
Texas, and strategically aligned by three business segments:
The Commercial Bank, The Retail Bank, and Wealth Management.
Comerica focuses on relationships, and helping people and
businesses be successful. In addition to 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. Comerica reported total assets of
$84 billion at June 30, 2020 and celebrated its 170th
anniversary in August 2019.
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