DALLAS, Oct. 27, 2016 /PRNewswire/ -- Comerica Bank's
California Economic Activity Index grew by 1.0 percentage points in August to a level of 122.7. August's reading is 39 points, or
46 percent, above the index cyclical low of 84.1. The index averaged 119.8 points for all of 2015, six and two-fifths points
above the average for all of 2014. July's index reading was 121.7.
"Our California Economic Activity Index increased again in August, its sixth consecutive monthly gain after stalling over the
year from March 2015 through March 2016. During the stall, the NASDAQ
100 Technology Stock index dipped, defense spending eased and housing starts retrenched. These negative forces were roughly
balanced by improving labor metrics, especially ongoing payroll job creation. Over the last six months, tech stocks have
performed better, defense spending has stabilized and housing starts have gained some momentum. In August, six out of eight index
components were positive including payroll employment, state exports, housing starts, defense spending, house price index and the
tech stock index. Only initial claims for unemployment insurance (inverted) and hotel occupancy dipped for the month," said
Robert Dye, Chief Economist at Comerica Bank. "Even though we are seeing anecdotal reports of the
northern California real estate market cooling, the Case-Shiller house price index for
San Francisco increased by 1.0 percent in August."
The California Economic Activity Index consists of eight variables, as follows: nonfarm payrolls, exports, hotel occupancy
rates, continuing claims for unemployment insurance, housing starts, national defense spending, home prices, and the
NASDAQ-100-Technology Sector Index (NDXT). 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 102 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 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.
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SOURCE Comerica Bank