DALLAS, Aug. 23, 2011 - Comerica Bank's California Economic Activity Index was unchanged in June, at a level of 102. June's reading is one point below the 104 average for all of 2010, and eight points, or nine percent, above the index cyclical low. Year-to-date the index has averaged 103.
The California Economic Activity Index stalled at a level of 102 for the three months of the second quarter of 2011.
"Spillover effects from the Japan earthquake combined with weak demand growth from the rest of the U.S. to leave California with only limited economic momentum at the end of the second quarter," said Robert A. Dye, Chief Economist, Comerica Bank. "A rebound in automotive production is already visible in recent U.S. data. This will help to stabilize Southern California durable goods manufacturers in the current third quarter. However, stress in financial markets due to both U.S. and Euro-Zone fiscal conditions threatens to put a damper on economic growth in the second half of 2011. Consumers remain tentative and housing markets remain weak, burdened by the still-elevated rate of delinquencies and foreclosures. A resurgent Silicon Valley remains a bright spot for the state economy but some high-tech industries are vulnerable to cooler markets and new restraints to government spending."
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.
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SOURCE Comerica Bank
