DALLAS, Oct. 29, 2020 /PRNewswire/ -- Comerica
Bank's California Economic Activity Index increased in August to a
level of 95.4. August's reading is 5 points, or 6 percent, above
the cyclical low. The index averaged 124.4 points in 2019, 0.5
points above the average for all of 2018. July's index reading was
92.8.
Our California Economic Activity Index rose again in August, up
now for the second consecutive month. Six of the eight components
improved for the month including nonfarm employment, housing
starts, house prices, state total trade, the Dow Jones Technology
Index and hotel occupancy. Unemployment insurance claims (inverted)
and industrial electricity demand were negative for the month. Our
California Index is moving away from the spring downturn and we are
now seeing the green shoots of an economic recovery. The state's
labor market continues to see slow, yet steady, improvements. As of
September, California recovered 38
percent of the net jobs lost this spring, still well below the
overall U.S. recovery rate of 52 percent. Single-family housing
activity is a bright spot for the state economy. California existing single-family home sales
rose for four consecutive months and were up 21.2 percent
year-over-year in September, according to the California
Association of Realtors. Historically low mortgage rates helped
boost the demand for single-family structures, pushing house prices
higher across the state's major metropolitan areas. Other sectors
such as entertainment, food services and tourism related industries
will continue to face headwinds this fall. California's high unemployment rate and the
end of enhanced unemployment benefits are limiting factors for
household spending. Also, the recent surge in COVID-19 cases in the
U.S. will weigh on domestic travel through the new year.
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 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
$83.6 billion at Sept. 30, 2020.
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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