Comerica Bank’s California Economic Activity Index declined in August, decreasing 1.2 percentage points to a level of 119.6. August’s reading is 36 points, or 42 percent, above the index cyclical low of 84.1. The index averaged 113.7 points for all of 2014, seven and one-half points above the average for all of 2013. July’s index reading was 120.8.
“Our California Economic Activity Index ticked down again in August, after a small decline in July. Six out of eight components were negative for the month, including the tech sector stock market index, state exports and housing starts. Much of the drag on the headline index came from factors originating outside of the state. U.S. stock market volatility increased in August with the sell-off in China. Also, the strong dollar is putting pressure on exports to international markets. House prices were neutral in August. Nonfarm payroll employment was the lone, but very important, positive contributor to our August index,” said Robert Dye, Chief Economist at Comerica Bank. “Year-over-year job growth in California, at 3.0 percent in August, remains about a percentage point stronger than the U.S. average.”
For a PDF version of the California Economic Activity Index click here: CaliforniaIndex_1015.