The BDE reports moderate stability in its May economic-activity index

The Economic Development Bank for Puerto Rico (BDE), chaired by Luis Alemañy González, published the monthly Economic Activity Index (IAE) report, showing a year-over-year change that was practically neutral during May. The composite indicator, which serves as a thermometer of island production, showed a fragile balance between employment gains and operating declines in other productive lines.

According to the state bank's technical breakdown, the nonfarm payroll employment component kept positive figures, driven by spending on reconstruction works financed with FEMA and CDBG-DR federal funds. Cement-bag sales, however, recorded a 2.8 percent year-over-year contraction, while gasoline consumption reported a drop attributed to fuel-price volatility and stagnation in retail commercial demand.

Electric generation reported by Genera PR and the AEE continued to reflect the system's vulnerability, with forced outages of baseload units, which limited industrial expansion. The economist and BDE president, Luis Alemañy González, noted that although federal mitigation funds sustain the capital flow in construction, accumulated inflation in operating costs and energy uncertainty continue to brake autonomous private-sector growth.

Source: Sin Comillas. https://sincomillas.com/el-indice-de-actividad-economica-del-bde-registra-variacion-moderada-en-mayo/