DALLAS, Oct. 1, 2020 /PRNewswire/ -- Comerica Bank's
Texas Economic Activity Index increased in July to 111.7. July's
index reading was 16 points, or 17 percent, above the index
cyclical low of 95.5. The index averaged 139.0 points for all of
2019, 3.7 points above the average for 2018. June's index reading
was revised to 107.0.
Our state economic activity indexes all showed an uptick in
economic activity in July. The rebound, after the precipitous
decline last spring, is dampened somewhat because of the smoothing
process that we use to reduce the volatility inherent in some
regional economic data. We expect to see ongoing gains in the
August state economic activity indexes. In July, six out of nine
sub-indexes were positive for Texas. They were nonfarm payrolls, housing
starts, house prices, total state trade, hotel occupancy and state
sales tax revenue. Unemployment insurance claims (inverted),
industrial electricity demand and drilling rig count remained
negative as they all have for the last four months. The string of
negatives for the drilling rig count began in December 2018. Oil prices eased at the end of
September, after firming early in the month. The current price
regime, near $40/barrel for West
Texas Intermediate, will keep a floor under drilling activity, but
will not motivate a rapid rebound from the current depressed
environment. The drilling rig count for Texas was relatively stable near 110 rigs from
early June through the end of September. The airline industry is
also a major employer in the state. The result of the current
negotiations in Washington D.C. on
another round of fiscal stimulus may be a determining factor in
airline industry employment this fall. The major airlines have said
that without additional support they will lay off tens of thousands
of workers this fall.
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 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.
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-texas-index-improved-301144161.html
SOURCE Comerica Bank