DALLAS, Jan. 4, 2017 /PRNewswire/ -- Comerica Bank's
California Economic Activity Index grew by 1.1 percentage points in
October to a level of 125.4. October's reading is 41 points, or 49
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. September's index reading was 124.3.
"Our California Economic Activity Index increased again in
October, completing its ninth consecutive month without a decline.
Positive stock market performance through the fourth quarter of
2016 is expected to keep the California Index growing at a
moderate-to-strong rate through year-end. In addition to the
October increase in the NASDAQ 100 Technology Stock sub-index,
other components were generally favorable. Payroll employment,
state exports, housing starts, home prices and hotel occupancy were
also positive contributors for the month. Unemployment insurance
claims (inverted) and defense spending eased in October," said
Robert Dye, Chief Economist at
Comerica Bank. "We expect to see a strong dollar through 2017,
supported by policies from the incoming Trump Administration.
California is exposed to downside
risks as a result of the potential for international trade disputes
and a strong dollar; however, these risk factors may be offset by
stronger domestic economic performance."
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 locations 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.
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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