California Economy Unchanged in November, Reports Comerica Bank's California Economic Activity Index

Published on Thursday, 02 February 2012 13:10 Written by TradersHuddle Staff

DALLAS, Feb. 2, 2012 /PRNewswire/ -- Comerica Bank's California Economic Activity Index was flat in November, at a level of 101.  November's reading is 12 percent, or 11 points, above the index cyclical low of 90.  Year-to-date the index has averaged 102, two points above the 100 average for all of 2010. 

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"Economic activity in California remains mixed as Silicon Valley continues to generate new jobs, but the large government sector in the state is still retrenching and housing markets in many areas are still depressed. Optimism among small business has begun to improve and that will support additional hiring but we are not at the stage yet where we can say that businesses are overall truly optimistic," said Robert Dye, Chief Economist at Comerica Bank. "California faces an ongoing headwind from weak state and local government spending and also a growing headwind from increasingly constrained federal government spending. House prices in Los Angeles and San Francisco were still falling as of last November and are expected to remain soft through 2012."

The California Economic Activity Index, as shown above, equally weighs seven seasonally-adjusted coincident indicators of real economic activity.  These indicators reflect activity in the manufacturing, travel and trade sectors, as well as job growth.  The Index levels represent a three-month moving average, used to smooth monthly volatility.  The Index is benchmarked so that 2008 equals 100.  The index is currently under review for statistical improvement. A revised history of the index will be available at next publication.

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