DALLAS, July 5, 2019 /PRNewswire/ -- Comerica Bank's
Michigan Economic Activity Index increased 0.2 percent in April to
a level of 117.9. April's reading is 20 points, or 20 percent,
above the index cyclical low of 97.9. The index averaged 118.4
points for all of 2018, 0.1 points above the index average for
2017. March's index reading was 117.7.
Comerica Bank's Michigan Economic Activity Index increased for
the third consecutive month in April. We remain cautious in our
view of the Michigan economy
despite the recent upward movement of the Michigan Index. The index
value of 117.9 for April is little changed from where it was in
June 2016, indicating a loss of
momentum in the Michigan economy
over the last three years, after accelerating strongly coming out
of the Great Recession. Further, we can say that in the 28 months
since January 2017, our Michigan
Index has increased just 10 times. In April, results were mixed.
Four out of nine index components were positive. They were housing
starts, house prices, total state trade and state sales tax
revenue. Three components were negative. They were unemployment
insurance claims (inverted), industrial electricity demand and
light vehicle production. Nonfarm employment and hotel occupancy
were unchanged for the month. The U.S. auto industry was buoyed by
stronger-than-expected sales in May, which increased to a 17.4
million unit annual rate. But strains are apparent in the auto
industry, particularly at the global level. Ford has announced a
significant cutback in Europe.
Ford intends to close 5 production facilities there and sell one
more and eliminate some 12,000 jobs globally, including
non-production jobs.
The Michigan Economic Activity Index consists of nine variables,
as follows: nonfarm payroll employment, continuing claims for
unemployment insurance, housing starts, house price index,
industrial electricity sales, auto assemblies, total trade, hotel
occupancy and sales tax revenue. 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 Bank, with one of the largest banking center networks
in Michigan, is a subsidiary of
Comerica Incorporated (NYSE: CMA), a financial services company
headquartered in Dallas, Texas,
and strategically aligned by three business segments: The Business
Bank, The Retail Bank, and Wealth Management. Comerica focuses on
relationships, and helping people and businesses be successful. In
addition to Michigan and
Texas, Comerica Bank locations can
be found in Arizona, California, and Florida, with select businesses operating in
several other states, as well as in Canada and Mexico.
To subscribe to our publications or for questions, contact us at
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