Le Lézard
Classified in: Business, Covid-19 virus

Comerica Bank's Michigan Index Improving

DALLAS, Oct. 29, 2020 /PRNewswire/ -- Comerica Bank's Michigan Economic Activity Index increased in August to a level of 103.1. August's reading was 16 points, or 19 percent, higher than the cyclical low. The index averaged 117.7 points for all of 2019, 0.9 points below the index average for 2018. July's index reading was revised to 95.2.

Our Michigan Economic Activity Index rebounded in July and August as a result of the early summer business re-openings and resumption of economic activity. We expect the index to show ongoing improvement in September as well. In August, all nine sub-indexes improved for at least the second consecutive month. Housing starts, light vehicle production and hotel occupancy have improved for three consecutive months. House prices have continued to firm since late 2019. As the center of the U.S. auto industry, Michigan faces both regional and national risk factors through the remainder of this year. Regionally, we are very concerned about the spread of the coronavirus through the manufacturing intensive Midwest region. A late-2020 surge in cases could lead to more restrictive social mitigation policies and their associated drag on the regional and national economies. Nationally, there is downside risk for car and truck demand that could potentially lead to reduced vehicle production, and manufacturing employment, in Michigan. To date, light vehicle demand has bounced back after the spring lows. September saw a 16.6 million unit sales rate for the U.S. as improved consumer confidence allowed pent-up demand from last spring to get spent out. Boeing's recent announcement that the 737 Max is near final FTA approval is also good news for western Michigan manufacturers.

The Michigan Economic Activity Index consists of nine variables, as follows: nonfarm payroll employment, continuing claims for unemployment insurance, housing starts, house price index, industrial electricity sales, auto assemblies, total trade, hotel occupancy and sales tax revenue. All data are seasonally adjusted. Nominal values have been converted to constant dollar values. Index levels are expressed in terms of three-month moving averages.

Comerica Incorporated (NYSE: CMA) is a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: The Commercial Bank, The Retail Bank, and Wealth Management. Comerica focuses on relationships, and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico. Comerica reported total assets of $83.6 billion at Sept. 30, 2020.

To subscribe to our publications or for questions, contact us at ComericaEcon@comerica.com. Archives are available at http://www.comerica.com/insights. Follow us on Twitter: @Comerica_Econ.

SOURCE Comerica Bank

These press releases may also interest you

at 16:20
Slack Technologies, Inc., today reported financial results for its fiscal quarter ended October 31, 2020. Management Commentary: "We had a phenomenal quarter, headlined by continued acceleration in new paid customer growth, with 12,000 net paid...

at 16:16
Acts Retirement-Life Communities has announced that its senior living retirement community, Plantation Estates, in Matthews, North Carolina has been renamed as Matthews Glen. The new name was selected overwhelmingly in a vote by the community's...

at 16:15
TC Transcontinental announces the appointment of Eric Morisset as Chief Development Officer effective today, December 1, 2020. Based in Montréal, Mr. Morisset will report to François Olivier, President and Chief Executive Officer of TC...

at 16:15
Rexford Industrial Realty, Inc. (the "Company" or "Rexford Industrial") , a real estate investment trust focused on creating value by investing in and operating industrial properties located in Southern California infill markets, today announced that...

at 16:15
Kingsway Financial Services Inc. ("Kingsway") today announced the closing of its acquisition of PWI Holdings, Inc. (collectively with its subsidiaries Preferred Warranties, Inc., Superior Warranties, Inc., Preferred Warranties of Florida, Inc., and...

at 16:15
Arthur J. Gallagher & Co. will be hosting its regularly scheduled quarterly management meeting on Tuesday, December 15 from 8:00 a.m. CT until approximately 10:30 a.m. CT. This quarter's meeting will take place virtually via conference call.  During...

News published on 29 october 2020 at 09:35 and distributed by: