Comerica Bank’s California Economic Activity Index grew in December, climbing 1.6 percentage points to a level of 118.3. December’s reading is 34 points, or 41 percent, above the index cyclical low of 83.8. The index averaged 113.4 points for all of 2014, seven and three-tenths points above the average for all of 2013. November’s index reading was 116.7.
“Our California Economic Activity Index increased nicely in December, showing ongoing improvement for the largest U.S. state economy. This was the ninth consecutive monthly gain for our California Index, and one that was broad-based, with seven out of eight index components increasing. We expect lower crude oil and gasoline prices to be a net benefit to the California economy, providing support to the state’s large consumer sector,” said Robert Dye, Chief Economist at Comerica Bank. “Gains in non-energy consumer spending and improving residential construction activity are pluses for the state in 2015. Also, the recent resolution of the labor dispute at California docks removes a key downside risk for the state economy.”
For a PDF version of the California Economic Activity Index click here: CaliforniaIndex_0215.