GDB economic activity index shows 1.1% drop
The Government Development Bank released Friday the results of its Economic Activity Index for October, which reflected a moderate month-over-month decline of 1.1 percent.
The value of the GDB-EAI was 133.2, a level that is consistent with the “support range for the stabilization of the local economy,” according to the agency.
In September, the value stood at 135.3, which in turn reflected a year-over-year drop of 5.5 percent.
Three of the index’s components — payroll employment, electric power and gas consumption — registered increases in October.
Payroll employment showed an increase of 1,300 new jobs, compared to September. The island’s employment base remained stable at 948,000, the agency noted.
Meanwhile, electric power and gas consumption showed an increase of 0.9 percent and 5.4 percent respectively, compared to the prior month. The report shows that October’s high temperatures contributed to increased consumption of electric power on the island.
However, the fourth component of the GDB-EAI, cement sales, recorded a reduction of 7.5 percent, compared to the previous month. The report analysis notes that there was a month-over-month decrease in sales of 138,000 bags of cement, revealing “continued weakness in the construction industry.”
The contraction in the construction industry also negatively affected the index’s year-over-year results. In comparison to October 2008, the GDB-EAI showed a reduction of 5.9 percent in October 2009.
The agency noted that economic activity last month was affected partly as a result of the the incidental blaze at the Caribbean Petroleum Corporation, which originated on Oct. 23 and burned for three days.
As a result of the massive fire, Highway 22 — which runs parallel to the Bayamón fuel depot — was closed for several days, something the GDB said “altered normal economic activity in the San Juan metropolitan area.”
Another sector of the index, which quantifies gas consumption, showed that it remained stable at 91 million gallons.
The Economic Activity Index is an economic tool that summarizes the current trend and dynamics of the Puerto Rican economy. The index has a high correlation with the island’s real Gross National Product.
GDB publishes the EAI on a monthly basis along with a qualitative economic comment to provide a clear understanding of the trend and current state of the local economy.
The value of the GDB-EAI was 133.2, a level that is consistent with the “support range for the stabilization of the local economy,” according to the agency.
In September, the value stood at 135.3, which in turn reflected a year-over-year drop of 5.5 percent.
Three of the index’s components — payroll employment, electric power and gas consumption — registered increases in October.
Payroll employment showed an increase of 1,300 new jobs, compared to September. The island’s employment base remained stable at 948,000, the agency noted.
Meanwhile, electric power and gas consumption showed an increase of 0.9 percent and 5.4 percent respectively, compared to the prior month. The report shows that October’s high temperatures contributed to increased consumption of electric power on the island.
However, the fourth component of the GDB-EAI, cement sales, recorded a reduction of 7.5 percent, compared to the previous month. The report analysis notes that there was a month-over-month decrease in sales of 138,000 bags of cement, revealing “continued weakness in the construction industry.”
The contraction in the construction industry also negatively affected the index’s year-over-year results. In comparison to October 2008, the GDB-EAI showed a reduction of 5.9 percent in October 2009.
The agency noted that economic activity last month was affected partly as a result of the the incidental blaze at the Caribbean Petroleum Corporation, which originated on Oct. 23 and burned for three days.
As a result of the massive fire, Highway 22 — which runs parallel to the Bayamón fuel depot — was closed for several days, something the GDB said “altered normal economic activity in the San Juan metropolitan area.”
Another sector of the index, which quantifies gas consumption, showed that it remained stable at 91 million gallons.
The Economic Activity Index is an economic tool that summarizes the current trend and dynamics of the Puerto Rican economy. The index has a high correlation with the island’s real Gross National Product.
GDB publishes the EAI on a monthly basis along with a qualitative economic comment to provide a clear understanding of the trend and current state of the local economy.
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