Puerto Rico Compass ©

Q1 2007: Puerto Rico Out of Balance

A review of Q1 of 2007

Although the economy remains in recession, its current wobbly condition has hindered some sectors but presented opportunities for other sectors. Yet, the lack of growth continues to hamper the island and the risk that it will spill over to all sectors, threatens equilibrium. Six economic indices, ranging from the overall performance of the economy, banking, manufacturing, construction, consumption, and a leading economic index point to an economy that struggles to stabilize during the 1st Quarter of 2007.

Puerto Rico Compass ©

Q4 2006: The Puerto Rico Economy is Still in Distress

A Review of Q4 of 2006

Puerto Rico’s economy is still far from claiming the beginning of a recovery. The leading index signals a positive 0.9% growth in Q4 of 2006. However, other indices, such as manufacturing continued falling with –0.7%, consumption and the coincident indices plunged –0.9% while banking posted 1.8% and the leading index surged to 0.9% growth. Although four of the six indices depict a negative trend, the island’s economic scene remains less volatile but still hampered by political gridlock.

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%.