California economy declined in September
November 20, 2012
• Bank says its index dipped 0.5 percent
• “On the positive side, housing markets are looking firmer”
Economic activity across California declined slightly in September, according to an analysis by Comerica Bank.
Its California Economic Activity Index dipped 0.5 percentage points in September, declining to a level of 104.2.
September’s reading is 31 points, or 42 percent, above the index cyclical low of 73.2. Year-to-date the index has averaged 102, three points above the average for all of 2011.
“Our California Economic Activity Index dipped in the third quarter even though the state continues to add jobs at a moderate pace,” says Robert Dye, chief economist at Comerica Bank. “Exports eased in September and the drilling rig count has declined noticeably since mid-summer. On the positive side, housing markets are looking firmer, particularly in Northern California, and this is providing broad-based support for the California economy.”
The Comerica California Economic Activity Index consists of eight variables: nonfarm payrolls, exports, sales tax revenues, hotel occupancy rates, continuing claims for unemployment insurance, building permits, Baker Hughes rotary rig count and the Silicon Valley 150 Index.
Comerica Bank, which operates Central Valley offices in Fresno and Sacramento, is a subsidiary of Comerica Inc. (NYSE: CMA) of Dallas, Texas.