Comerica Bank’s Arizona Economic Activity Index fell in August, decreasing 1.9 percentage points to a level of 95.3. August’s index reading is 24 points, or 34 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. July’s index reading was revised up from 96.9 to 97.2.
“Our Arizona Index dipped in August, reflecting the first decrease in the index since March. Exports and building permits recorded significant decreases and pushed the August reading,” said Robert Dye, Chief Economist at Comerica Bank. “Increasing residential mortgage rates are a headwind for home sales, particularly for new home sales, and builders are being cautious as a result. Fortunately, home prices continue to increase, helping homeowners repair the depleted equity in their homes and that is a positive for the regional economy. I expect our Arizona Index to continue to trend upward as the state and national economies expand in 2014.”
For a PDF version of the Arizona Economic Activity Index click here: ArizonaIndex_1013.