Bank’s California Economic Index Was Flat in MayTuesday, July 23, 2013
An index measuring economic activity for California was flat in May, declining by 0.01 percent from its April level.
The Comerica Bank California Economic Activity Index was 106.6 in May, 34 points or 47 percent above the cyclical low of 72.6, the Dallas-based bank said.
The index averaged 101 points for all of last year, or three points above its average for all of 2011.
Robert Dye, Comerica Bank’s chief economist, said the May reading was expected given a weakened decline in gross domestic product growth during the second quarter. “We expect to see stronger economic growth in the California economy through the second half of the year,” Dye said.
The index consists of eight variables: nonfarm payrolls, exports, sales tax revenues, hotel occupancy rates, continuing claims for unemployment benefits, building permits, the Baker Hughes rig count, and the Silicon Valley 150 Index. All data are seasonally adjusted, and indexed to the base year 2008.
— SDBJ Staff Report