Skip to Content
PR Newswire

Comerica Bank's Texas Index Climbs

Comerica Bank's Texas Index Climbs

Comerica Bank's Texas Index Climbs

PR Newswire

DALLAS, July 20, 2021

DALLAS, July 20, 2021 /PRNewswire/ -- Comerica Bank's Texas Economic Activity Index increased in May to 123.0. May's index reading was 24.0 percent above the recent low of 99.2 set in June 2020. The index averaged 112.1 points for all of 2020, 13.5 points below the average for 2019. April's index reading was revised to 118.2.

Our Texas Economic Activity Index increased by 4.1 percent in May, this is the strongest one-month gain for the index in its history since early 2008. The index has now increased for three consecutive months and is up in 10 out of the last 11 months. All nine sub-indexes were up in May, for the first time since March 2017. Improving U.S. and global conditions, rising oil prices and less restrictive COVID mitigation policies for Texas businesses have combined to bring the Texas Index for May to within 2.6 percent of its pre-pandemic level. We expect the Texas Index to exceed its pre-pandemic level by the end of summer. WTI oil prices have pulled back over the last week from $75 per barrel on July 14, to near $66 per barrel on July 19. The 13 OPEC members have reached an agreement to increase production gradually between this August and September 2022, ending their 10 million barrel per day nominal limit from Spring 2020. We expect global oil demand to continue to increase as major economies shed the weight of COVID-related restrictions. This will keep a floor under oil prices even with increased production. However, there is certainly a risk of weakening global oil demand if COVID variants require re-tightening of social mitigation policies. The Texas drilling rig count accelerated moderately from September 2020 through February 2021. Recent gains have been more gradual, leading to only modest growth in oil field employment.

The Texas 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, Texas rotary rig count, total trade, hotel occupancy and sales tax revenue. All data are seasonally adjusted. Nominal values have been converted to constant dollar values. Total 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 $86.3 billion at March 31, 2021.

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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/comerica-banks-texas-index-climbs-301337852.html

SOURCE Comerica Bank

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.