DDEC unveils overhaul backed by strong 2025 economic signals
Puerto Rico’s economic indicators point to a period of stabilization and modest growth as new data from the Department of Economic Development and Commerce (DDEC, in Spanish) show steady performance across core activity drivers.
The agency released updated results for the Puerto Rico Economic Activity Index (IAE-PR, in Spanish) while also announcing a major overhaul of its Office of Strategy and Business Intelligence, an effort aimed at modernizing the way economic information is compiled, analyzed and shared with the private sector and policymakers.
The IAE-PR registered 127.6 points in July and 128.2 in August 2025, reflecting monthly increases of 0.4% and 0.5%. August showed a year-over-year variation of 0.0%, which the DDEC described as evidence of a stabilization phase following several years of growth.
Three of the index’s four components saw year-over-year increases: nonfarm payroll employment (+2.1%), cement sales (+13.2%) and electricity generation (+0.1%). Gasoline consumption declined 5.7%, which the agency attributes to a structural shift toward efficiency.
The 2024 annual average reached 128.1 points, 0.6% higher than 2023. Fiscal year 2024 closed with 2.9% growth, while fiscal 2025 shows a more moderate 0.7% increase, consistent with a normalization trend.
Economic intelligence overhaul
In parallel, the DDEC announced a transformation of its Office of Strategy and Business Intelligence intended to establish a modern economic intelligence center with updated methodologies, digital visualizations and centralized data reporting.
“We cannot compete or plan blindly. Information is the new capital,” said agency Secretary Sebastián Negrón.
The redesign includes methodological updates to statistical products, expanded specialized staffing and a new centralized digital platform where indicators, sector reports, economic profiles and interactive tools will be published in downloadable formats.
José Luis Rivera, the office’s director, said the goal is to elevate Puerto Rico’s economic disclosure standards by turning “scattered statistics into actionable business intelligence.”
As part of this shift, the DDEC will now oversee production and publication of the IAE-PR, historically prepared by private financial institutions. The transition will include a review of the index’s methodology and visualization tools.
New profiles, retail sales update
The agency also introduced new Economic Profiles by Industry that consolidate data on major sectors into visual formats. The profiles include information on sectoral gross domestic product, employment, exports, wages, investment, establishments and foreign trade.
Initial profiles cover manufacturing, pharmaceuticals, medical devices, agricultural biotechnology, food manufacturing, information technology and professional services.
According to the document, manufacturing accounts for 44.2% of Puerto Rico’s GDP and employs more than 83,000 people, while pharmaceuticals make up 74% of the island’s exports.
The DDEC’s updated Retail Sales Report eliminated a four-month publication backlog and revised its sampling for the first time in seven years.
Retail sales totaled $4.4 billion in August 2025, up 1.6% year over year. Year-to-date sales reached $29.7 billion (+2.1%), and the first two months of fiscal 2025 totaled $8.7 billion (+0.7%).
The strongest gains were reported in sporting goods stores (+33.6%), clothing (+16%), pharmacies (+9.9%) and restaurants (+9.2%).
Negrón described retail sales as “one of the most sensitive indicators of domestic consumption,” underscoring the importance of timely data release.
The Manufacturing Purchasing Managers’ Index (PMI) remained in expansion territory at 55.6 in September, with new orders, production, employment, supplier deliveries and inventories above the 50 threshold. The index has shown expansion in 114 of the past 184 months, underscoring its role as a leading indicator of industrial activity.
Negrón said the transformation represents “a decisive step” toward building an economic intelligence infrastructure capable of improving planning, attracting investment and supporting Puerto Rico’s long-term growth.
