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Comerica: Slower Car Sales Trip Local Detroit Economy in February

19 March 1998

Slower Car Sales Trip Local Economy in February -- Comerica

    DETROIT, March 18 -- The Detroit Area Business Activity Index
compiled by Comerica Bank lost 2 points in February due to slower vehicle
sales.  The index closed at a level of 185, compared with 187 in January.
    Nonetheless, February's index reading stood 1.7 percent above year-earlier
levels.  Through February, the local economy was up 2.9 percent from the
comparable first two months of 1997.
    Comerica Bank compiles the Detroit Area Business Activity Index monthly
from eight measures of regional activity which are seasonally adjusted,
corrected for inflation and expressed as an index with 1982 as base year equal
to 100.
    "Although motor vehicle production rose in February, sales stumbled," said
David L. Littmann, senior economist at Detroit-based Comerica Bank.  "Warmer
than normal weather conditions reduced energy consumption, and modest gains in
steel output were offset by a decline in the average hourly work week."
    The Economics Department of Comerica Bank has calculated the Detroit Area
Business Activity Index monthly since 1957, depicting Metro Detroit's economy
over seven full swings of the U.S. business cycle.  Comerica is Michigan's
largest bank.

SOURCE  Comerica Bank