Wednesday, December 8, 2021

Economic Activity Index Continues to Reflect Negative Y-o-Y Growth

By on September 12, 2016

SAN JUAN – The Puerto Rico Fiscal Agency and Financial Advisory Authority’s Economic Activity Index (FAFAA-EAI) for July 2016 was 123.9, reflecting a 1.6% decrease compared with July 2015 and an increase of 0.1% compared with June 2016.

FAFAA logoOn a year-to-date basis (July 2015 to July 2016), the decline was of 1.7% with respect to the same period in the previous fiscal year.

The EAI is an economic indicator that summarizes current trends and dynamics of the Puerto Rico economy. It has a high correlation with the island’s real gross national product (GNP) in both level and annual growth rates. This means the FAFAA-EAI accurately follows the behavior of the economy.

Of the four EAI indicators — payroll employment, electric-power consumption, gasoline consumption and cement sales — only one rose in July compared with a year ago.

Total non-farm payroll employment for July averaged 888,800, an annual decrease of 0.2%. The preliminary data for electric power generation for July was 1.82 billion kilowatt-hours (kWh), an annual decrease of 2.1%.

The preliminary number for gasoline consumption – which is estimated by the FAFAA from the Treasury Department’s monthly gasoline excise tax collections paid by importers, which are transferred to the Puerto Rico Highways and Transportation Authority – in July was 83 million gallons, 3.4% more than in July 2015.

Cement sales for July totaled 0.92 million bags, registering an annual decrease 23.2%.

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