DALLAS, June 1, 2016 /PRNewswire/ -- Comerica Bank's
Michigan Economic Activity Index declined in March, down 0.7
percentage points to a level of 127.2. March's reading is 53
points, or 72 percent, above the index cyclical low of 74.0. The
index averaged 124.3 points for all of 2015, seven points above the
index average for 2014. February's index reading was 127.9.
"Our Michigan Economic Activity Index dipped slightly in March
and remains range bound since late last year. Jobs are still being
added to the Michigan economy, but
the state's important manufacturing sector is facing three
challenges. First, demand for manufactured goods from the oil and
gas industry has collapsed. Second, the relatively strong dollar
and tepid global demand are headwinds for export oriented
manufacturing. Third, the auto sector increasingly looks like it is
at the top of its cycle and will not significantly increase
production from here," said Robert
Dye, Chief Economist at Comerica Bank. "Supporting the
Michigan Index in March were payroll employment, house prices, auto
production and sales tax receipts. Drags in the index in March came
from exports, initial claims for unemployment insurance (inverted),
housing starts and hotel occupancy."
The Michigan Economic Activity Index consists of eight
variables, as follows: nonfarm payrolls, exports, hotel occupancy
rates, continuing claims for unemployment insurance, housing
starts, sales tax revenues, home prices, and auto production. All
data are seasonally adjusted, 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 213 banking centers 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/economics. Follow us on Twitter:
@Comerica_Econ.
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SOURCE Comerica Bank