Economics Dept.: Comerica Michigan Index Continues Increase In June
DETROIT (WWJ) — Comerica Bank’s Michigan Economic Activity Index increased in June, up 2.6 percentage points to a level of 127.4.
June’s reading is 55 points, or 77 percent, above the index cyclical low of 72.1, reached at the bottom of the last recession.
The index averaged 114 for all of 2012, 11 points above the index average for 2011. May’s index reading was revised down from 125.2 to 124.8.
“Our Michigan Index improved again in June, aided by a strengthening auto sector,” said Comerica chief economist Robert Dye. “Light vehicle sales in the U.S. had a break-out month in June, hitting a 15.9 million unit annual rate and that is good news for Michigan. Statewide employment strengthened in June and sales revenues are trending up. July employment levels were also up, but that is not reflected in our June index.”
The Michigan Economic Activity Index consists of seven variables: nonfarm payrolls, exports, sales tax revenues, hotel occupancy rates, continuing claims for unemployment insurance, building permits, and motor vehicle production. All data are seasonally adjusted, as necessary, and indexed to a base year of 2008, the economic activity of which is equal to 100. Nominal values have been converted to constant dollar values. Index levels are expressed in terms of three-month moving averages.
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