DALLAS, May 23, 2012 /PRNewswire/ -- Comerica Bank's California Economic Activity Index broke a streak of flat readings in March, rising nearly two points to a level of 101.0. March's reading is 28 points, or 38 percent, above the index cyclical low of 73.2. Year-to-date the index has averaged 100, one point above the average for all of 2011.
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"Our California Economic Activity Index showed a small improvement for March, primarily reflecting ongoing strength in the state's high-tech sector. However, economic momentum in the state remains somewhat patchy, and overall job growth is below the national average. State fiscal conditions are challenging and more fiscal tightening at the state level is expected. This will add to the drag from federal fiscal tightening, increasing the headwinds against private sector growth," said Robert Dye, Chief Economist at Comerica Bank. "With federal and state-level fiscal tightening, municipal budgets will continue to be stressed in many areas."
The California Economic Activity Index consists of eight variables, as follows: nonfarm payrolls, exports, sales tax revenues, hotel occupancy rates, continuing claims for unemployment insurance, building permits, Baker Hughes rotary rig count and the Silicon Valley 150 Index (SV150). 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 105 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.
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SOURCE Comerica Bank
