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Comerica Bank's California Index Boosted by Silicon Valley in December

CMA

DALLAS, Feb. 27, 2014 /PRNewswire/ -- Comerica Bank's California Economic Activity Index grew in December, advancing 2.5 percentage points to a level of 111.4. December's reading is 39 points, or 53 percent, above the index cyclical low of 72.7. The index averaged 106 points for all of 2013, five points above the average for all of 2012. November's index reading was revised slightly down from 109.1 to 108.9.

(Logo: http://photos.prnewswire.com/prnh/20010807/CMALOGO)

"Our California Index climbed again in December, now for the fifth consecutive month. Most of the eight components of the index eased in December. However, payroll jobs ticked up and market valuations for high tech companies were strong in December," said Robert Dye, Chief Economist at Comerica Bank. "House price appreciation has also been strong for San Diego, Los Angeles and San Francisco and that is a positive for the state economy. We expect the California economy to show increasing momentum in 2014."

The California Economic Activity Index consists of eight variables, as follows: nonfarm payrolls, exports, sales tax revenues, hotel occupancy rates, continuing claims for unemployment insurance, building permits, Baker Hughes rotary rig count and the Silicon Valley 150 Index (SV150).  All data are seasonally adjusted, as necessary, and indexed to a base year of 2008. Nominal values have been converted to constant dollar values. Index levels are expressed in terms of three-month moving averages.

Comerica Bank, with 105 banking centers 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 find Comerica on Facebook, please visit www.facebook.com/ComericaCares.

To subscribe to our publications or for questions, contact us at ComericaEcon@comerica.com. Archives are available at http://www.comerica.com/economics. Follow us on Twitter: @Comerica_Econ.

SOURCE Comerica Bank