Puerto Rico’s industrial activity shows highest monthly increase in past 6 yrs.
The most recent Manufacturing Coincident Indicator Index report (IICM, in Spanish) showed a 1.7% growth in activity, which represented the highest recorded monthly increase in at least the past six years and the 20th uptick in the past 22 months, Department of Economic Development and Commerce (DDEC, in Spanish) officials confirmed.
The report is generated through the agency’s Business Intelligence Division, reflecting activity for the month of February 2022.
When compared to the same month of the previous year, industrial activity reflected an increase of 8.5%, being the 12th consecutive increase and the second highest annual rate recorded during the pandemic period.
The month of May 2021 showed the highest rate of the pandemic period, which was associated with a “rebound effect” during that month.
The importance of the increase in February 2022 is associated with the fact that it has exceeded the “rebound” period since the lockdown in 2020 and that it confirms a sustained trend in the recovery of the sector, only threatened by the risks inherent in high prices in raw materials and the effects of the conflict in Ukraine, Economic Development Secretary Manuel Cidre said.
“Statistics show that industrial activity in Puerto Rico has gained strength, representing a constant growth for the past 22 months. Certain economic variables have worked in our favor, among them, the lowest unemployment rate in the last 40 years at 6%, a labor participation rate of 45%, the increase in the minimum wage, the Work Credit, among many others, which constitute a safe route to continue generating economic activity, in addition to promoting an attractive environment to attract investment,” he said.
In the first two months of 2022, the average value of the IICM showed strong industrial activity, registering an increase of 7.7% compared to the same period of 2021, which registered a reduction of 1.5%.
The IICM is a metric and analysis tool that measures industrial activity in Puerto Rico on a short-term or monthly basis. This way, visibility of the economic status of manufacturing on the island is offered while providing analysis tools to the private, public, and academic sectors with an indicator for their corresponding studies, public policies, and activity projections. economic, among others.