DALLAS, Jan. 31, 2017 /PRNewswire/ -- Comerica
Bank's California Economic Activity Index grew by 0.9 percentage
points in November to a level of 126.3. November's reading is 42
points, or 50 percent, above the index cyclical low of 84.1. The
index averaged 119.8 points for all of 2015, six and two-fifths
points above the average for all of 2014. October's index reading
was 125.5.
"Our California Economic Activity Index was up again in
November, its 10th consecutive monthly increase. Gains
were broad-based. Six out of eight index components were positive,
including nonfarm employment, unemployment insurance claims
(inverted), defense spending, home prices, hotel occupancy and
technology stock prices. Housing starts eased for the month, as did
state exports. Job growth in the state has been faster than the
national average, with November employment up 2.3 percent over the
previous 12 months. Steady job creation brought the state
unemployment rate down to 5.3 percent in November, still above the
U.S. average of 4.6 percent for the month. Even though the state's
unemployment rate remains above the U.S. average, labor market
conditions are getting tight, putting upward pressure on wages.
Wage pressure is also being stoked by the January 1st increase in the state's minimum wage
to $10.50 per hour," said
Robert Dye, Chief Economist at
Comerica Bank. "Northern
California real estate markets cooled in the second half of
2016, but San Francisco home
prices were still up 5.3 percent in November, compared with a year
earlier."
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 locations 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 subscribe to our publications or for questions, contact us at
ComericaEcon@comerica.com. Archives are available at
http://www.comerica.com/economics. Follow us on Twitter:
@Comerica_Econ.
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SOURCE Comerica Bank