DALLAS, Jan. 30, 2020 /PRNewswire/ -- Comerica Bank's California Economic Activity Index increased in November to a level of 125.5. November's reading was 28 points, or 28 percent, above the index cyclical low of 97.8. The index averaged 124.0 points in 2018, 2.8 points above the average for all of 2017. October's reading was revised to 125.0.
Comerica Bank's California Economic Activity Index increased again in November. This is the fourth consecutive monthly gain and reinforces the idea that the California economy regained some momentum at yearend. The components of the California Index were mostly positive. Five of the eight components improved in November including nonfarm employment, housing starts, house prices, the Dow Jones Technology Index and hotel occupancy. The three negative components included unemployment insurance claims (inverted), industrial electricity demand and state total trade. The momentum of the California economy at yearend was supported by steady job growth and a rebound in housing activity. The California economy still faces a number of headwinds in 2020. The signing of a Phase 1 trade deal between the U.S. and China and the ratification of USMCA in January were positives for the state's trade sector. However, tariffs on roughly $370 billion of Chinese imports remain in place. The effect of the recent coronavirus outbreak on the domestic and global economy is unknown as we are still in the early stages of this event. The U.S. is currently considering a ban of flights from China to the U.S. A ban of travelers from China to the U.S. would be a potential drag on the state's tourism industry. According to Visit California, visitors from China totaled 937,777 or 14 percent of foreign visitors (excluding Mexico) into the state, year-to-date in November 2019.
The California Economic Activity Index consists of eight variables, as follows: nonfarm payroll employment, continuing claims for unemployment insurance, housing starts, house price index, industrial electricity sales, total trade, technology stock index and hotel occupancy. 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 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.
SOURCE Comerica Bank