Comerica Bank’s Arizona Economic Activity Index advanced in May, increasing 3.1 percentage points to a level of 110.2. May’s index reading is 39 points, or 55 percent, above the index cyclical low of 71.2. The index averaged 97 points for all of 2013, 10 points above the average for full-year 2012. April’s index reading was unchanged at 107.1.
“Our Arizona Economic Activity Index increased in May, indicating ongoing gains to the Arizona economy. The Arizona Index has increased for seven consecutive months, driven by job creation and by recovering residential real estate markets. We expect to see an overall improving trend in the index through the remainder of this year, but the pace of improvement will likely slow from what we have seen through the first five months of 2014,” said Robert Dye, Chief Economist at Comerica Bank. “House prices in Phoenix are generally up about 8 percent over the previous 12 months, but recently the pace of appreciation appears to be cooling.”
For a PDF version of the Arizona Economic Activity Index click here: ArizonaIndex_0714.