Comerica Bank's Michigan Index Shows Some Lift

DALLAS, July 26, 2017 /PRNewswire/ -- Comerica Bank's Michigan Economic Activity Index increased 1.3 percentage points in May to a level of 132.1. May's reading is 58 points, or 78 percent, above the index cyclical low of 74.1. The index averaged 127.7 points for all of 2016, four and two-tenths points above the index average for 2015. April's index reading was 130.8.

"The Comerica Bank Michigan Economic Activity Index for May increased, pulling out of a five-month stall from December 2016 through April 2017. Four index components were positive in May. They were state exports, unemployment insurance claims (inverted), house prices and hotel occupancy. Housing starts, auto production and state sales tax revenues were negative factors in May. The nonfarm employment sub-index was unchanged. With U.S. auto sales easing this year, we look for less push from Michigan's auto sector going forward. Non-auto-related manufacturing and the service sector can keep the state economy engaged but it will be difficult to overcome the drag from the auto sector if national auto sales continue to deteriorate," said Robert Dye, Chief Economist at Comerica Bank. "Michigan's unemployment has dropped sharply in recent months, down to 3.8 percent in June, still above the low of 3.2 percent from early 2000."

The Michigan Economic Activity Index consists of eight variables, as follows: nonfarm payrolls, exports, hotel occupancy rates, continuing claims for unemployment insurance, housing starts, sales tax revenues, house prices, and auto production. All data are seasonally adjusted, and indexed to a base year of 2008. Nominal values have been converted to constant dollar values. Index levels are expressed in terms of three-month moving averages.

Comerica Bank, with one of the largest banking center networks in Michigan, is a subsidiary of Comerica Incorporated (NYSE: CMA), a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: The Business Bank, The Retail Bank, and Wealth Management. Comerica focuses on relationships, and helping people and businesses be successful. In addition to Michigan and Texas, Comerica Bank locations can be found in Arizona, California, and Florida, with select businesses operating in several other states, as well as in Canada and Mexico.

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SOURCE Comerica Bank

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