Comerica Bank’s California Economic Activity Index declined in January, down 1.6 percentage points to a level of 110.1. January’s reading is 37 points, or 51 percent, above the index cyclical low of 72.7. The index averaged 106 points for all of 2013, five points above the average for all of 2012. December’s index reading was revised slightly up from 111.4 to 111.7.
“Our California Economic Activity Index dipped in January as most index components eased. Payroll job growth in California has temporarily stalled, showing little change from November through January. Residential building permits also eased in January after solid gains over the previous three months,” said Robert Dye, Chief Economist at Comerica Bank. “Increasing private construction activity and firming property prices are a fundamental positive for California. Also, the tech sector continues to be a strong performer. The Silicon Valley 150 stock index was up 17 percent in January over the previous 12 months. We expect the California economy to improve through 2014.”
For a PDF version of the California Economic Activity Index click here: CaliforniaIndex_0314.