Puerto Rico's Economic Activity Index showed year-over-year improvement in all of its private sector components for the first time in two years.
The index fell 0.7% in June compared to May and 1.0% on a year-over-year basis because of a 6.5 percent drop in government jobs, as the administration of Gov. Alejandro Garcia Padilla looks to reduce the deficit. The loss of 16,500 government jobs overwhelmed the gain of 5,600 in the private sector, year over year.
Average electrical generation was up 1.9% from June 2013, gasoline consumption rose 1.4%, and cement sales gained 4.3%. The annual increase in cement sales was the first since August 2012.
From June 2013 to June 2014, total non-farm payroll employment declined 1.2%. In the period private employment increased 0.8%.
The last time that all the private sector components of the index went up year-over-year was July 2012.
On Aug. 1 the Government Development Bank of Puerto Rico also announced the May index value was down 0.2% from April and 1.1% from May 2013.
The index is up 0.4% from its low point in August 2013.
