DALLAS, July 29, 2020 /PRNewswire/ -- Comerica Bank's Michigan Economic Activity Index declined in May to a level of 90.3. May's reading marks a new historical low for the index. The index averaged 117.7 points for all of 2019, 0.9 points below the index average for 2018. April's index reading was revised to 102.4.
Our state economic activity indexes for May show the historic decline in economic activity this spring due to the coronavirus pandemic. The Michigan economy was hit particularly hard as auto production ground to a near halt in April, which is still impacting our May Index. Eight out of nine sub-indexes declined in May for Michigan. They were nonfarm employment, unemployment insurance claims (inverted), housing starts, industrial electricity demand, light vehicle production, total state trade, hotel occupancy and state sales tax revenue. As in April, the only monthly increase came from the house price index. We again note that house price data for Michigan has been limited this spring, and so we are making estimates that may be revised later. Vehicle production resumed in May after a near halt in April. June saw a further increase in auto and light truck production to an 8.3 million unit annual rate, still well below the 10.6 million unit average rate for 2019. U.S. auto sales have improved since bottoming out at a 9.0 million unit annual rate in in April. June saw an increase to a 12.7 million unit sales rate. Total sales for 2019 were 17.0 million units. Michigan is among the large group of states that saw an increase in coronavirus infections through July. As a result, Governor Whitmer extended her emergency declaration through August 11, limiting public gatherings and service at bars. We expect to see improvement in the Michigan Index in the next few months, but the index will likely not return to its pre-crisis level this year.
The Michigan Economic Activity Index consists of nine variables, as follows: nonfarm payroll employment, continuing claims for unemployment insurance, housing starts, house price index, industrial electricity sales, auto assemblies, total trade, hotel occupancy and sales tax revenue. 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 Incorporated (NYSE: CMA) is a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: The Commercial Bank, The Retail Bank, and Wealth Management. Comerica focuses on relationships, and helping people and businesses be successful. In addition to 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. Comerica reported total assets of $84 billion at June 30, 2020 and celebrated its 170th anniversary in August 2019.
SOURCE Comerica Bank