Tag: Compass

Not yet. Puerto Rico’s economy is showing vital signs and the system is still far from claiming the start of economic recovery. It appears the economy has begun to show some minor positive signs for the next three months, but still it remained in recession in the second quarter of 2007. Construction continues to pull the economy downwards while banking still holds the fort. Puerto Rico Compass, a proprietary tool of HCCG, has recently revised the methodology and data of the indices. Find out how the new six quarterly economic indices of PR Compass gauge the overall performance of the economy.

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 1^st Quarter of 2007.

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.

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%.