DALLAS, Feb. 28, 2017 /PRNewswire/ -- Comerica
Bank's California Economic Activity Index improved by 0.1
percentage points in December to a level of 126.5. December's
reading is 42 points, or 51 percent, above the index cyclical low
of 84.1. The index averaged 122.4 points for all of 2016, two and
three-fifths points above the average for all of 2015. November's
index reading was 126.4.
"Our California Economic Activity Index increased in December
for the ninth consecutive month. We said 10 months last time, but a
data revision this month has changed the story. Most index
components were positive for December, including nonfarm
employment, state exports, housing starts, home prices and the
technology stock price index. However, unemployment claims
(inverted), defense spending and hotel occupancy dipped. State
exports have generally been increasing but the strong dollar is a
headwind for California's
international exports, while the weak Mexican peso is a specific
headwind," said Robert Dye, Chief
Economist at Comerica Bank. "President Trump has announced his
intention to significantly increase U.S. defense spending, which is
a positive for the state economy."
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.
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