Puerto Rico marks 1.8% YOY growth in EDB-EAI
The Economic Development Bank for Puerto Rico released preliminary results for the Puerto Rico Economic Activity Index (EDB-EAI) for May. The report provides an analysis that offers insights into various sectors and their performance.
The EDB-EAI tracks economic performance and includes various components such as nonfarm payroll employment, cement sales, gasoline consumption and electric energy generation.
According to the report, the EDB-EAI reached 127.5 during May, marking an increase of 0.8% on a month-over-month basis. On a year-over-year basis, the index advanced by 1.8%. The index declined by 0.8% during fiscal year 2021 (July – June) but grew by 4.9% for fiscal year 2022.
Calendar year 2021 closed with an increase of 4.9%. However, for calendar year 2022, it increased preliminarily by 1.9%. It remained unchanged, preliminarily, with 0% growth for the first 11 months of fiscal year 2023 (July – May).
The report also highlights that the index exhibited 13 consecutive months with annual decreases since March 2020. However, the trend shifted starting from March 2021, showing an improvement in economic activity for 18 straight months, up until September 2022. The change was attributed to the recovery efforts that followed hurricanes Irma and Maria, and the containment measures to halt the spread of the COVID-19 pandemic.
In May 2023, one of the index’s four seasonally adjusted components registered a monthly decline: the gasoline consumption estimate (0.2%). Meanwhile, nonfarm payroll employment, cement sales and electric energy generation increased by 0.8%, 0.5% and 6.6%, respectively. When compared against the same month from the previous year (May 2022), nonfarm payroll employment improved by 4.6%, cement sales by 1%, and the gasoline consumption estimate by 2.9%, while electric energy generation dropped by 0.2%.
Bond Buyer quoted Advantage Business Consulting President Vicente Feliciano as saying that despite the eventual cutback of federal disaster funds, which are currently helping, “the economy is strong enough that the end of federal funds will not bring a crash.”
