Comerica Bank’s California Economic Activity Index rose more than one and a half points to a level of 103.6 in May. May’s reading is 30 points, or 42 percent, above the index cyclical low of 73.2. Year-to-date the index has averaged 101, two points above the average for all of 2011.
“The California economy is showing more momentum in 2012 after flat-lining through most of 2011, as shown by our California Economic Activity Index,” said Robert Dye, Chief Economist at Comerica Bank. “Private-sector job growth is starting to improve, and housing markets are looking a little firmer. State fiscal conditions remain challenging, which is adding to the stress on some municipalities.”