DALLAS, July 27, 2016 /PRNewswire/ -- Comerica Bank's
Texas Economic Activity Index eased in May, down 0.6 percentage
points to a level of 91.5. May's reading is 19 points, or 26
percent, above the index cyclical low of 72.8. The index averaged
97.5 points for all of 2015, seven and three-fifths points below
the average for full-year 2014. April's index reading was 92.1.
"Our Texas Economic Activity Index ticked down again for May,
after improving in April. We can say that the rate of deterioration
in the index is easing, indicating that the Texas economy is still feeling the weight of
the reset in the energy sector, but that weight will gradually
diminish going forward. The drilling rig count, which serves as our
marker for activity in the oil and gas industry, has stabilized
with the rebound in oil prices off the February low. In recent
weeks the rig count has increased slightly. However, many lagged
effects from the dramatic reset in oil prices are still working
through the Texas economy," said
Robert Dye, Chief Economist at
Comerica Bank. "We look for a gradual flattening out of our Texas
Index through the second half of the year, and stabilizing economic
conditions in areas with a high concentration of oil-related
activity."
The Texas 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 the Baker Hughes rotary rig count.
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 is a subsidiary of Comerica Incorporated (NYSE:
CMA), the largest U.S. commercial bank headquartered in
Texas, 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 131 banking
centers in Dallas/Fort Worth,
Houston, Austin, San
Antonio and Kerrville
regions of Texas, Comerica Bank
locations can be found in Arizona,
California, Florida and Michigan, 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