Comerica Bank: California economy on the mend

A new survey taken by Comerica Bank has found that the largest state economy in the U.S. may be on the verge of turning the corner after beginning 2010 with stabilized rates, likely pleasing those looking to get out of debt.

The California Economic Activity Index for California for January released last week remained at 102, the same rate it stood at in December 2009. While the January rate remained below its peak levels seen last October, Dana Johnson – the bank’s chief economist – said that it had shown “broad-based improvement” from its cyclical low rate seen last March.

“Although our Index has stalled this winter after sharp gains last summer, it still appears to me that the California economy is in the early stages of a moderate recovery,”said Johnson. “If, as I expect, employment gains emerge in the next few months, I will become much more confident that a sustained private-sector expansion is taking hold.”

The California index is compiled through the equal weighing of nine seasonally-adjusted “coincident indicators of real economic activity,” reflecting activity in manufacturing, tourism, travel, trade sectors, and job growth.

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