Comerica Bank's Texas Economic Activity Index declined 0.6 percentage points in August to a level of 103.4*. The August reading is 32 points, or 44 percent, above the index cyclical low of 71.6. The index averaged 102 points for all of 2012, 10 points above the average for full-year 2011. There was no revision to July's index reading of 104.0.
“Our Texas Index eased again in August, giving back its July increase. Volatility in residential building permits has been a big factor this year in keeping our Texas Index flat. Permits eased significantly in August, countering the gains seen in most other components of the index,” said Robert Dye, Chief Economist at Comerica Bank. “Also, recent job growth has been uneven. Low natural gas prices have been a dampening force on some parts of the energy sector. Fortunately, oil prices have remained firm, providing plenty of incentive for drilling activity. I expect the Texas economy to continue to grow through the end of this year.”
*State level exports data have not been reported for August due to the federal government shut-down. We estimated an August export number in order to calculate the total index.
The Texas Economic Activity Index consists of seven variables, as follows: nonfarm payrolls, exports, sales tax revenues, hotel occupancy rates, continuing claims for unemployment insurance, building permits and Baker Hughes rotary rig count. All data are seasonally adjusted, as necessary, and indexed to a base year of 2008. 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), the largest U.S. commercial bank headquartered inTexas, strategically aligned by three business segments: The Business Bank, The Retail Bank, and Wealth Management. Comerica focuses on relationships, and helping people and businesses be successful. In addition to 136 banking centers inDallas/Fort Worth, Houston, Austin, San Antonio and Kerrville regions of Texas, Comerica Bank locations can be found inArizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada andMexico. To find Comerica on Facebook, please visit www.facebook.com/ComericaCares.