Comerica Bank’s Arizona Economic Activity Index steadily increased in May, rising 1.5 percentage points to a level of 96.5. The May index reading is 25.2 points, or 35 percent, above the index cyclical low of 71.3. The index averaged 87.2 points for all of 2012, 8.7 points above the average for full-year 2011. There was no revision to April’s index reading of 95.0.
“Our Arizona Index increased again in May, boosted by climbing house prices and increasing residential construction activity,” said Robert Dye, Chief Economist at Comerica Bank. “Home prices in Phoenix have climbed every month since bottoming out in August 2011. Permits for residential construction increased steadily from mid-2011 through 2012 and have maintained improved levels in 2013. Of course, there is a long way to go before rates of construction feel normal for Phoenix and the rest of Arizona. We are optimistic that further gains to housing markets are on the way, and these will drive our Arizona Index upward through the second half of 2013.”
For a PDF version of the Arizona Economic Activity Index click here: ArizonaIndex_0713.