DETROIT ECONOMY HITS AIR POCKET IN OCTOBER
DETROIT, Nov. 18 /PRNewswire/ -- The Detroit Area Business Activity Index compiled by Comerica Bank fell 8 points in October to a level of 159, compared to a reading of 167 in September. The decline in the index was attributed to a local drop in October auto sales. "This still leaves the Detroit area economy with a respectable 4.5 percent gain between October 1992 and October 1993, and a very strong year-to-date, 10-month advance of 9.1 percent compared to the same period last year," said David L. Littmann, first vice president and senior economist with Comerica Bank in Detroit. Littmann said the trouble spot for the October index stemmed from a single source -- auto sales. "The strongest month of the year for auto sales turned out to be September, which apparently borrowed some strength from October.
Also, the financial transactions indicator, debits, which reflects large changes in durable goods purchases, took it on the chin in October, after reaching a high water mark for the year in September," Littmann said.
All other components of the Detroit Area Business Activity Index were stable for October, and the 159 level achieved last month corresponds precisely to the average of the index thus far in 1993, Littmann observed. The index averaged 148 during 1992. The Detroit Area Business Activity Index is a monthly measure and analysis of Detroit-area business conditions. Comerica Bank compiles the index from eight different measures of regional activity which are seasonally adjusted, corrected for inflation and expressed as an index with 1982 as base year equal to 100. The Economics Department of Comerica Bank has calculated the index monthly since 1957, depicting metro-Detroit's economy over seven full swings of the U.S. business cycle. -0- 11/18/93 /CONTACT: David L. Littmann, first vice president and senior economist of Comerica Bank, 313-222-7241/ (CMA)
CO: Comerica Bank ST: Michigan IN: AUT SU: ECO
ML -- DE023 -- 6139 11/18/93 14:58 EST
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|Date:||Nov 18, 1993|
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