Comerica Bank’s Texas Economic Activity Index declined 0.6 percentage points in August to a level of 103.4. The August reading is 32 points, or 44 percent, above the index cyclical low of 71.6. The index averaged 102 points for all of 2012, 10 points above the average for full-year 2011. There was no revision to July’s index reading of 104.0.
“Our Texas Index eased again in August, giving back its July increase. Volatility in residential building permits has been a big factor this year in keeping our Texas Index flat. Permits eased significantly in August, countering the gains seen in most other components of the index,” said Robert Dye, Chief Economist at Comerica Bank. “Also, recent job growth has been uneven. Low natural gas prices have been a dampening force on some parts of the energy sector. Fortunately, oil prices have remained firm, providing plenty of incentive for drilling activity. I expect the Texas economy to continue to grow through the end of this year.”
For a PDF version of the Texas Economic Activity Index, click here: TexasIndex_1013.