DALLAS, Sept. 28, 2016 /PRNewswire/ -- Comerica Bank's
California Economic Activity Index grew by 0.8 percentage points in
July to a level of 121.7. July's reading is 38 points, or 45
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. June's index reading was 120.9.
"The Comerica Bank California Economic Activity Index increased
again in July, its fourth consecutive gain. Five out of eight index
sub-components were positive for the month, including payroll jobs,
state exports, unemployment insurance claims (inverted), housing
starts and the NASDAQ 100 Tech Stock Index. In July, the state
added a relatively weak 18.6 thousand jobs, but job growth bounced
back in August. Real estate markets in Northern California are cooling relative to
their overheated state over the last few years. According to the
Case-Shiller data, house prices in San
Francisco eased by 0.1 percent in July, but are still up by
6.1 percent over the previous year. Cooler real estate markets in
Northern California will let some
froth out of the market, pre-empting a larger correction later,"
said Robert Dye, Chief Economist at
Comerica Bank. "Los Angeles house
prices gained 0.2 percent in July and are up by 5.5 percent over
the last year."
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