California Economy Flat in October, Reports the Comerica Bank California Economic Activity Index

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Dec 21, 2011, 12:00 ET

DALLAS, Dec. 21, 2011 /PRNewswire/ --Comerica Bank's California Economic Activity Index was flat in October, at a level of 100. October's reading is six percent above the index cyclical low of 94. Year-to-date the index has averaged 102, two points below the 104 average for all of 2010.

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"California's complex economy is showing signs of growth, but key components of economic activity remain soft, and are keeping our index weak as we round out 2011," said Robert Dye, Chief Economist at Comerica Bank. "The broadest measure of economic activity for the state, payroll job creation, is heading in the right direction and is helping to bring the state's unemployment rate down gradually. Ongoing job growth through the end of 2011 will help to support the state's economy and firm up tax revenues. Many regions of the state are still suffering from depressed real estate conditions, anchoring overall economic activity. Silicon Valley continues to hire as stalwarts Apple, Cisco and Google actively recruited through October."

The California Economic Activity Index equally weighs nine, seasonally-adjusted coincident indicators of real economic activity. These indicators reflect activity in the manufacturing, travel and trade sectors, as well as job growth and consumer outlays. The Index levels represent a three-month moving average, used to smooth monthly volatility. The Index is benchmarked so that 2008 equals 100.

Comerica Bank, with 104 banking centers in the key California markets of San Francisco and the East Bay, San Jose, Los Angeles, Orange County, San Diego, Fresno, Sacramento, Santa Cruz/Monterey, and the Inland Empire, is a subsidiary of Comerica Incorporated (NYSE: CMA). Comerica is a financial services company headquartered in Dallas, Texas, and strategically aligned into three major business segments: the Business Bank, the Retail Bank, and Wealth Management. Comerica focuses on relationships and helping businesses and people be successful.