DALLAS, June 24, 2021 /PRNewswire/ -- Comerica Bank's Texas Economic Activity Index increased in April to 117.5. April's index reading was 18.4 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. March's index reading was revised to 115.4.
Our Texas Economic Activity Index increased by 1.8 percent in April, continuing the economic rebound from the February freeze out. Seven out of nine sub-indexes were positive for the month, including nonfarm employment, unemployment insurance claims (inverted), house prices, drilling rig count, total state trade, hotel occupancy and state sales tax revenue. The housing starts and industrial electricity demand sub-indexes both contracted for the month. Higher-than-expected oil prices will motivate increased oil field activity in Texas this summer. Some analysts are forecasting $100 oil by the end of the year. If that happens, that would certainly pull capital back into the Texas oil industry. By the third week of June, the Texas rig count had improved to 221 active rigs, more than double the level from a year earlier. The Texas COVID-19 full vaccination rate of about 40 percent as of June 21 leaves a significant amount of the state population exposed to the COVID-19 D variant which is rapidly gaining traction in many parts of the world. According to the Centers for Disease Control, the D variant spreads more easily and causes more severe symptoms than other variants. So COVID-19 remains a significant risk to public health in Texas and other states through the remainder of this year. At this time, we do not anticipate a return to strict social mitigation policies in Texas this year.
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.
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SOURCE Comerica Bank
