Wednesday, June 4, 2014

Puerto Rico: Economy Contracts During First Ten Months of FY, Cement Sales Plunges 14.6%

According to The Latin American Tribune, Puerto Rico’s economy has contracted 3.3% during the first ten months of the current fiscal year, compared to the same period in the previous fiscal year, the Government Development Bank said in a report.

The economic activity index, a gauge used by the island’s government to measure trends in the economy, fell 1.3% in April, compared to the same month in 2013.

The index takes into account non-agricultural employment, electricity generation, gasoline consumption and cement sales.

Non-agricultural employment fell 1.5%, electricity generation dropped 3.1%, gasoline consumption fell 2.1% and cement sales plunged 14.6% during the first 10 months of the fiscal year, compared to the same period in the prior fiscal year.

COMMENT: The Government Development Bank issued the report late Friday, revising the March figure from the contraction of 0.80% initially reported to a pullback of 1%.

The economic trend turned negative in April after appearing to show a slight recovery since December.

Economic activity, however, has contracted every month since January 2013 following nearly a year of improvement.