Puerto Rico's Economy Shows Signs of Stabilization

Puerto Rico's economic activity improved for a second consecutive month in July, but the gains were not enough to reverse the broader contractionary trend. The Coincident Indicators Index rose 0.5% from June to a preliminary 110.5 points, with 2019 set at 100.

Economic activity was unchanged from July 2025, ending six consecutive months of year-over-year declines. However, the average index for the first seven months of 2026 was 0.5% below the same period last year, indicating that the broader contraction persisted.

Manufacturing was the main source of improvement over the past two months, adding 900 seasonally adjusted jobs and recording higher exports during the period. In July, manufacturing made its strongest positive contribution to the Coincident Indicators Index so far this year, followed by electricity production and nonfarm payroll employment.