Comerica Bank’s California Economic Activity Index was flat in October, at a level of 100. October’s reading is six percent above the index cyclical low of 94. Year-to-date the index has averaged 102, two points below the 104 average for all of 2010.
“California’s complex economy is showing signs of growth, but key components of economic activity remain soft, and are keeping our index weak as we round out 2011”, said Robert Dye, Chief Economist at Comerica Bank. “The broadest measure of economic activity for the state, payroll job creation, is heading in the right direction and is helping to bring the state’s unemployment rate down gradually. Ongoing job growth through the end of 2011 will help to support the state’s economy and firm up tax revenues. Many regions of the state are still suffering from depressed real estate conditions, anchoring overall economic activity. Silicon Valley continues to hire as stalwarts Apple, Cisco, and Google actively recruited through October.”