Comerica Bank’s California Economic Activity Index fell 1.3 percentage points in November, declining to a level of 102.4. November’s reading is 29 points, or 40 percent, above the index cyclical low of 73.2. The index has averaged 103 points the eleven months through November, four points above the average for all of 2011.
“After reaching its most recent peak of 105.2 in July, our index has declined for each of the past four months ending in November. A declining drilling rig count has been a strong drag on the index, and residential construction indicators and Silicon Valley stock performance have recently been weaker, as well,” said Robert Dye, Chief Economist at Comerica Bank. “State sale and income tax increases will help stabilize the state’s fiscal condition in the near term, but they also contribute to a high cost environment which could end up being a drag on business formation down the road.”
Click here for a PDF version of the California Economic Activity Index: CaliforniaIndex_0113.