Comerica’s Michigan Business Index dips

DETROIT — Comerica Bank’s Michigan Economic Activity Index decreased in June to a level of 118.8.

The index is comprised of nine variables — nonfarm payroll employment, continuing claims for unemployment insurance, housing starts, a house price index, industrial electricity sales, auto asemblies, total trade, hotel occupancy, and sales tax revenue.

Bank officials said that in June, four components of the index were positive — nonfarm payrolls, unemployment insurance claims, hotel occupancy, and state sales tax revenue. Five were negative — housing starts, house prices, industrial electricity demand, auto and light truck production, and total state trade.

All data are seasonally adjusted, and nominal values are converted to constant dollar values and expressed as three-month moving averages.

June’s reading is 21 points, or 21 percent, above the index cyclical low of 97.9, reached at the bottom of the last recession in 2007-09. The index averaged 118.2 points for all of 2017, one point above the index average for 2016. May’s index reading was revised to 119.3.

To subscribe to Comerica economic publications or for questions, contact ComericaEcon@comerica.com. Archives are available at http://www.comerica.com/insights.

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