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Comerica: Spring’s “Demand Destruction” Still Reverberates in TX Economy
Comerica Bank’s Texas Economic Activity Index decreased in June to 106.8. June’s index reading was 12 points above the index cyclical low of 95.5, the Dallas-based bank said Friday.
The index averaged 139.1 points for all of 2019, 3.8 points above the average for 2018. May’s index reading was 114.2.
The bank notes that “the demand destruction from the spring shutdowns is still reverberating through the economy. We expect most states, including Texas, to face a lingering high unemployment rate well into next year, and that will be a drag on overall economic activity.”
In June, two of the nine sub-indexes for Texas were positive: house prices and hotel occupancy. The seven negative sub-indexes were nonfarm employment, unemployment insurance claims, housing starts, industrial electricity demand, rig count, total state trade and state sales tax revenues.
Comerica says firmer oil prices will help the rig count to stabilize and eventually improve.
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- ◦Economy
