California Economic Activity Index Steadily Climbs
Comerica Bank’s California Economic Activity Index increased in April to a level of 110.9. April’s reading is 19.6 percent above the historical low of 92.7 set in June 2020.
The index averaged 107.9 points in 2020, 18.9 points below the average for all of 2019. March’s index reading was revised to 108.1.
The California Economic Activity Index improved for the 10th consecutive month in April. Seven of the nine sub-indexes gained for the month including nonfarm employment, unemployment insurance claims (inverted), house prices, industrial electricity demand, state total trade, hotel occupancy and enplanements. Housing starts and state revenues declined for the month.
The positives for the California economy this year:
- The state’s labor market improved through May with a strong rebound in hiring after the winter slump. It has averaged 124,000 net new jobs per month since February. California’s labor market recovery will receive additional lift this summer as the state drops most of the pandemic restrictions on businesses.
- The state’s travel and hospitality sector had increased activity in April. Both enplanements and hotel occupancy reached the highest levels since last spring.
- Demand for single-family housing was strong in April and is supportive of new construction this year.