Comerica Bank’s California Economic Activity Index eased in May, declining 0.4 percentage points to a level of 112.9. May’s reading is 40 points, or 56 percent, above the index cyclical low of 72.6. The index averaged 106 points for all of 2013, five points above the average for all of 2012. April’s index reading was revised up to 113.3.
“Our California Economic Activity Index for May gave back just a little of the solid gain that we saw in April. State labor market conditions continue to improve. In May, California’s payroll employment total of 15,448,600 eclipsed the pre-recession high from August 2007. Also, residential real estate conditions are improving across the state,” said Robert Dye, Chief Economist at Comerica Bank. “However, we are seeing some softs spots in the data stream. Notably, state exports are subdued as are sales tax collections. Overall, we expect the California economy to continue to grow moderately through the second half of this year and into 2015.”
For a PDF version of the California Economic Activity Index click here: CaliforniaIndex_0714.