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Comerica Bank's California Index Extends Gains

June 29, 2017
By Robert A. Dye, Ph.D, Daniel Sanabria

Comerica Bank’s California Economic Activity Index increased by 0.9 percentage points in April to reach 129.7. April’s reading is 46 points, or 54 percent, above the index cyclical low of 84.1. The index averaged 122.4 points in 2016, two and three-fifths points above the average for all of 2015. March’s index reading was 128.8.  

“Our California Economic Activity Index increased in April, for the 14th consecutive month. As we have
seen in recent months, the results for April were mixed, but consistent with moderate overall growth in the state economy. Five out of eight index components were positive in April. They were unemployment insurance claims (inverted), housing starts, house prices, hotel occupancy and the Nasdaq 100 Technology stock index. State exports and defense spending were negatives in April, while nonfarm payrolls were neutral. Job growth in the state has clearly slowed down in 2017. For the year ending in April, California payroll employment had gained 1.4 percent, slightly below the national average of 1.5 percent growth,” said Robert Dye, Chief Economist at Comerica Bank. “The previously red-hot San Francisco housing market is showing signs of cooling as area housing prices eased in April.”

For a PDF version of the California Economic Activity Index click here:  California_Index_0617.pdf