DALLAS, Oct. 24, 2011 /PRNewswire/ -- Comerica Bank's California Economic Activity Index ticked up one point in August, to a level of 102. August's reading is two points below the 104 average for all of 2010, and nine percent above the index cyclical low of 94. Year-to-date the index has averaged 103.
(Logo: http://photos.prnewswire.com/prnh/20010807/CMALOGO)
"Job creation in California has stalled since last February, and that is a fundamental drag on the state's economy, reflected in the dip in our California Index, visible since early this year," said Robert Dye, Chief Economist at Comerica Bank. "A strong high-tech sector in Silicon Valley is not enough to overcome fundamental weakness in housing markets which has depressed house prices in many parts of the state. The California economy remains on the bubble, vulnerable to sliding back into recession. Recent flat port activity in Southern California may be a signal that retailers nationwide are expecting soft sales in the upcoming holiday shopping season. The ongoing crisis in the euro-zone adds downside risk to the global macroeconomic outlook which could be a further weight on the California economy."
The California Economic Activity Index equally weighs nine, seasonally-adjusted coincident indicators of real economic activity. These indicators reflect activity in the manufacturing, travel and trade sectors, as well as job growth and consumer outlays. The Index levels represent a three-month moving average, used to smooth monthly volatility. The Index is benchmarked so that 2008 equals 100.
Comerica Bank, with 104 banking centers 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 receive this index directly to your email inbox, go to www.comerica.com/econsubscribe to subscribe.
SOURCE Comerica Bank
