Comerica Bank’s Arizona Economic Activity Index fell 0.3 points in May to a reading of 85.2 The May reading is 14 points, or 20 percent, above the index cyclical low of 71.0. Year-to-date the index has averaged 84 points, six points above the average for all of 2011.
“After reaching its highest point since December 2008 in April, the Arizona activity index dipped a minor 0.3 percentage points in May. Job growth in Arizona is now outpacing that of the nation, and Phoenix home prices are up consistently from year-end 2011,” said Robert Dye, Chief Economist at Comerica Bank. “The recovery in local housing markets remains susceptible to downside risks from a cooler U.S. economy, however, it is very encouraging to see the housing industry climbing out of depression, and that climb is helping to strengthen the statewide economy.”