Comerica Bank’s California Economic Activity Index grew in August, increasing 0.6 percentage points to a level of 104.6*. August’s reading is 32 points, or 44 percent, above the index cyclical low of 72.7. The index averaged 101 points for all of 2012, three points above the average for all of 2011. July’s index reading was revised down from 104.4 to 104.0.
“Our California Index improved in August, as five of the eight component series increased. However, there is a technical factor worth noting that impacts our California Index. Unemployment insurance claims in California have been underreported in recent weeks due to problems with the state’s computer systems. We expect to see a worsening of the state’s unemployment insurance claims as the technical problems are fixed and this could be a drag on our index in coming months,” said Robert Dye, Chief Economist at Comerica Bank. “Other labor market indicators for California continue to improve, supported by firming real estate markets.”
For a PDF version of the California Economic Activity Index, click here: CaliforniaIndex_1013.