Comerica Bank’s Florida Economic Activity Index increased in March, rising four points to a level of 109.5. The March index reading is 29 points, or 36 percent, above the index cyclical low of 80.6. The index averaged 107 in the first quarter of 2012, eight points above the index average for all of 2011.
“Florida is gaining economic momentum, as shown by the uptick in our Florida Economic Activity Index for March. Real estate conditions are gradually firming, as buyers take advantage of the very high affordability in residential markets,” said Robert Dye, Chief Economist at Comerica Bank. “Tourism activity is picking up and that is helping to stabilize the state economy. However, cuts in federal spending are dragging on the Florida economy as the space shuttle program fades into the history books. A weaker global macroeconomic environment may limit international interest in Florida real estate this year.”