Comerica Bank's Michigan Index Climbs
Comerica Bank's Michigan Economic Activity Index rose to 104.0 in February 2021, marking a 21% increase from the historical low of June 2020. The index averaged 99.9 in 2020, significantly lower than 2019's average. Six of the nine components contributing to the index were positive, including nonfarm payrolls and sales tax revenue. However, the auto industry faces challenges due to supply chain constraints, particularly a global computer chip shortage. With total assets of $86.3 billion as of March 31, 2021, Comerica continues to focus on fostering relationships to support economic growth.
- Michigan Economic Activity Index increased to 104.0 in February 2021.
- 21% higher than June 2020's historical low.
- Six out of nine index components showed positive growth.
- Auto industry suffers from supply chain issues and chip shortages.
- Subdued payroll employment gains in March due to manufacturing job losses.
DALLAS, April 28, 2021 /PRNewswire/ -- Comerica Bank's Michigan Economic Activity Index increased in February to a level of 104.0. February's reading was 21 percent higher than the historical low reached in June 2020. The index averaged 99.9 points for all of 2020, 9.1 points below the index average for 2019. January's index reading was 102.9.
This month we are rolling out our new methodology for our state economic activity indexes. We have made some adjustments to the sub-components and to their weights in order to better align with state-level GDP. Also, we have rebased the sub-components of our indexes to average 100 for 2012. The headline index may be above 100 for 2012 (as is the case for Michigan) due to the weighting scheme. Our new Michigan Economic Activity Index increased for the third consecutive month in February. Six out of nine components were positive for the month, including nonfarm payrolls, unemployment insurance claims (inverted), house prices, industrial electricity demand, hotel occupancy and sales tax revenue. The three components retreating in February were housing starts, light vehicle production and total state trade. We expect Michigan to continue to benefit from the rapidly reflating U.S. economy this spring. However, the auto industry, along with other manufacturing and construction industries, is being held in check by supply chain constraints, including a global shortage of computer chips. Several assembly plants in Michigan have temporarily shut down this spring and/or have throttled back production. Chip manufacturers are ramping up production. We expect computer chips to remain in tight supply through the summer and possibly later. Payroll employment gains in March were subdued as the manufacturing sector gave up some jobs.
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 Bank is a subsidiary of Comerica Incorporated (NYSE: CMA), 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
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