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DALLAS, November 9, 2022 /PRNewswire/ — Comerica Texas’ index of economic activity rose at an annualized rate of 1.5% in the three months through August. The index has slowed sharply after strong gains earlier this year. The index increased by 7.6% compared to last year in August.

Four of the nine components of the index improved during the month. Employment continues to rise Texas and the number of employed is well above pre-pandemic levels. Active oil rigs rose again as energy prices remained high. The energy sector is likely to provide a strong headwind from Texas economy

After adjusting for the normal seasonal increase in the summer, housing starts fell 9% in the three months to August from the previous three months. Looking to the future, from Texas The housing market will be a big drag on the state’s economy as rising mortgage interest rates and high prices push homebuyers to the margins. House prices are also likely to fall, although less than in the rest of the country.

Texas GDP rose 1.8% in the second quarter of 2022 and only 0.5% in the first quarter. The slowdown in the Comerica Texas index shows the state’s economy was still stuck over the summer. High inflation, rising interest rates, a rapidly slowing domestic economy and weak economies outside the US will be constant headwinds Texaslikely causing the state’s growth to remain below trend in 2023.

The Comerica Texas Economic Activity Index is a monthly composite indicator of state economic activity. The index provides a comprehensive advanced view of the state of from Texas economy, using economic data that is available about a quarter before real GDP is released. The index consists of nine components: nonfarm payroll employment, continuing unemployment insurance claims, housing starts, housing prices, industrial electricity sales, Texas rotating equipment count, foreign trade, hotel occupancy, and sales tax revenue. All data are seasonally adjusted and nominal values ​​are converted to constant dollar values ​​as appropriate. To filter the month-to-month volatility of the index’s constituents, the index is calculated from the three-month moving averages of its constituents. Values ​​for a minority of components are projected from prior months’ release due to the timing of data release.

Comerica Bank is a subsidiary of Comerica Incorporated (NYSE: CMA), a financial services company based in Dallas, Texas, and strategically aligned by three business segments: The Commercial Bank, The Retail Bank and Wealth Management. Comerica is focused on relationships and helping people and businesses succeed. In addition to TexasComerica Bank locations can be found at Arizona, California, Florida i Michiganwith select companies operating in several other states as well as a canada i Mexico. Comerica reported total assets of 84.1 billion dollars how of September 30, 2022.

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SOURCE Comerica Bank