Puerto Rico Compass ©

Q3 2006: Puerto Rico Weathers the Storm

A Review of Q3 of 2006

Although the economic horizon remains cloudy, its descent appears to have begun to stabilize during the 3rd Quarter of 2006. In this rapidly changing world, consumers are now demanding quicker more efficient service from businesses. PR Compass provides a comprehensive picture of the PR economy by computing and analyzing six quarterly indices. This tool provides real time data and analysis relating to PR’s economic environment. During this quarter the coincident index fell –0.4% compared to the same quarter in 2005. The local fiscal crisis seems to have been overcome. The banking index grew 3.1% indicating resiliency in this sector. Manufacturing fell –2.3% with no recovery in sight. Consumers feel the burn with –2.5% in the index. Construction followed suit with –0.6%. For the next six months, the leading index stabilizes at –1.6%.