Comerica Bank’s California Economic Activity Index was unchanged in May, at a level of 102. May’s reading is two points below the 104 average for all of 2010, and eight points, or nine percent, above the index cyclical low. Year-to-date the index has averaged 103. April’s reading was revised to 102 from a level of 104.
Following a revised one-point drop in April, the California Economic Activity Index was flat in May. Job growth in the state stalled for the first time in seven months, while production factors were roughly flat on the month. High energy prices and supply chain disruptions associated with the Japan earthquake and tsunami likely damped growth in California over the first two months of the second quarter. As these headwinds dissipate, the local economy should begin showing strength against a background of moderate national expansion over the second half of the year.