Comerica Bank’s California Economic Activity Index slumped in December, declining 1.7 points to a level of 100.7. December’s reading is 28 points, or 38 percent, above the index cyclical low of 73.2. The index averaged 102 points for all of 2012, three points above the average for all of 2011.
“After peaking mid-year, the California Economic Activity Index has declined for each of the last five months, reaching the lowest point since February 2012 in December,” said Robert Dye, Chief Economist at Comerica Bank. “The only index variables notching a positive in December were building activity and tourism. December weakness was likely exaggerated by the strike which temporarily shut down southern California ports early in the month. Recent state income and sales tax increases will add to the drag from federal-level fiscal tightening in 2013.”
Click here for the PDF version of the California Economic Activity Index: CaliforniaIndex_0213.