DALLAS, June 1, 2021 / PRNewswire / – The Comerica Bank California Economic Activity Index rose in March to 108.0. The March reading is 17% above the all-time low of 92.7 set in June 2020. The index averaged 107.8 points in 2020, 18.9 points below the average for all of 2019. The February index reading was revised to 106.1.
Our California Economic Activity Index rose again in March. This is the ninth consecutive monthly gain after revisions to historical data showed activity in January edged up. Seven of the nine components of the index were positive in March, including non-farm employment, UI claims (reversed), house prices, total state trade, hotel occupancy, shipments and state revenues. Housing starts and industrial electricity demand fell for the month. The California index is gaining momentum after a soft start until 2021, when most regions were under tighter social mitigation restrictions. The increase in vaccination rates and the significantly lower number of cases allow a wider reopening of the California economical this spring. This has resulted in an increase in hiring in recent months. Even with a net loss of jobs in January, California managed to create 310,300 jobs in the first four months of 2021. The state remains in an employment recession, but we expect it to regain ground this summer as demand for key sectors continues to grow. service rebounds. Travel-related activity is already picking up speed, with boardings improving through April. California hotel occupancy rates also hit a 13-month high in April. Rising household incomes thanks to fiscal stimulus and wage recovery are also a big boost for consumer spending this summer. However, supply disruptions, along with longer delivery times and rising prices, will be a limiting factor for consumer spending in 2021.
The California Economic Activity Index includes nine variables, as follows: non-farm payroll employment, ongoing UI claims, housing starts, house price index, industrial electricity sales, total trade, occupancy of hotels, embarkations and state revenues. All data is seasonally adjusted. Nominal values have been converted to constant dollar values. Index levels are expressed in terms of three-month moving averages.
Comerica Bank is a subsidiary of Comerica Incorporated (NYSE: CMA), a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: commercial banking, retail banking and wealth management. Comerica focuses on relationships and helps people and businesses succeed. In addition to Texas, the branches of Comerica Bank are located in Arizona, California, Florida and Michigan, with selected companies operating in several other states, as well as in Canada and Mexico. Comerica declared total assets of $ 86.3 billion at March 31, 2021.
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