Comerica Bank’s California Economic Activity Index rose nearly two points in July, increasing by 1.8 points, to a level of 105.2. July’s reading is 32 points, or 44 percent, above the index cyclical low of 73.2. Year-to-date the index has averaged 102, three points above the average for all of 2011.
“Following a flat reading this June, the California economy climbed to its highest level since June 2008, according to our July California Economic Activity Index,” said Robert Dye, Chief Economist at Comerica Bank. “Private-sector job growth is improving gradually, and housing markets are looking firmer. State fiscal conditions remain challenging, adding to the stress on some municipalities. Facebook’s disappointing IPO is weighing on Silicon Valley stock prices, and is a contributing factor to state tax revenue shortfalls.”
Click here for a PDF version of the California Economic Activity Index: CaliforniaIndex_Sep12.