DALLAS, Sept. 28, 2016 /PRNewswire/ -- Comerica
Bank's Texas Economic Activity Index dipped in July, down 0.9
percentage points to a level of 90.3. July's reading is 18 points,
or 24 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. June's index reading was
91.2.
"Our Texas Economic Activity Index dipped again in July due to a
sizeable drop in the exports sub-index. Texas exports obviously include crude oil,
petroleum products and natural gas. With oil prices low, crude oil
production has dropped significantly. According to the Texas
Railroad Commission, total oil production in Texas in July dipped to 85.3 million barrels,
down 21 percent from the peak of 108.3 million barrels in
December 2014. So lower economic
activity in the state is a direct result of the reset in global oil
markets. Also, non-petroleum exports from Texas are facing lackluster demand from the
rest of the U.S., indicated by weak U.S. GDP growth through the
first half of this year. International demand for Texas products is also lackluster due to the
subdued economic performance of many of our trading partners and
due to the relatively strong U.S. dollar, which makes Texas products more expensive. Fortunately,
the increasingly diverse economy of Texas is still adding new jobs," said
Robert Dye, Chief Economist at
Comerica Bank. "Texas added 34,000
jobs in July, close to its average from 2011-2014, when oil field
activity was surging."
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