Comerica Bank's California Index Sees First Decline Since March

DALLAS, Oct. 2, 2015 /PRNewswire/ -- Comerica Bank's California Economic Activity Index declined in July, decreasing 0.3 percentage points to a level of 120.9. July's reading is 37 points, or 44 percent, above the index cyclical low of 84.0. The index averaged 113.7 points for all of 2014, seven and one-half points above the average for all of 2013. June's index reading was 121.2.

"Our California Economic Activity Index showed a small decline in July. State exports weakened, reflecting tougher export conditions for many industries as the dollar strengthens and global demand cools. Housing starts, house prices and hotel occupancy were all drags on the headline index in July. Stock market volatility was also a negative factor, weighing on our tech sector indicator," said Robert Dye, Chief Economist at Comerica Bank. "It is important to note, however, that the labor market components for the California index are showing strength, and we expect that to continue through the remainder of the year."

The California Economic Activity Index consists of eight variables, as follows: nonfarm payrolls, exports, hotel occupancy rates, continuing claims for unemployment insurance, housing starts, national defense spending, home prices, and the NASDAQ-100-Technology Sector Index (NDXT). 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 103 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 find Comerica on Facebook, please visit www.facebook.com/ComericaCares.

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SOURCE Comerica Bank