Puerto Rico's economic activity index in August was down 0.7% compared to July, the Government Development Bank of Puerto Rico reported.
Compared to August 2013, the index was down 1.1%.
Analysts say Puerto Rico will ultimately need growth not only to benefit its population but to increase government taxes and revenues to help pay back bonds.
Total non-farm employment for August was up 0.4% compared to August 2013. This increase was limited by government employment declining 0.3% in the same period, as the government cut back on spending. Private sector employment went up by 0.7% in the period, according to the United States Bureau of Labor Services employer survey.
Total non-farm employment was the one index measure that went up. Electric power generation went down 4.1% compared to August 2013. Estimated gasoline consumption went down 0.3% in the period. Finally, cement sales plummeted 22.4%, year-over-year.
Despite the plunge in cement sales, there are other indicators that Puerto Rico's construction industry is growing. The bureau's employer survey for Puerto Rico's mining, logging, and construction sector showed employment has been up on a year-over-year basis for five consecutive months. In August employment was up 5.1% from a year earlier.
The Puerto Rico Planning Board compiles an economic activity index for the construction sector that showed a 2.2 % increase to July 2014 from July 2013, said Director Julio Hernandez Correa. Its index of construction materials sales was up 1.2% in the same period.
