Puerto Rico's economic indicators mixed

Puerto Rico's preliminary economic activity index in February was down 0.2% from a year earlier but most other economic statistics were positive.

According to the Puerto Rico Economic Development Bank' preliminary estimate, the index value was down 0.6% in January from a year earlier.

However, on a month-to-month basis, January's index was up 0.5% from December and February's index was up 0.3% from January.

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Employment statistics paint a more purely positive picture.

According to the U.S. Bureau of Labor Statistics household survey, employment in February was up 0.4% from January, 5.9% from a year earlier, and 23.2% from 5 years earlier.

The bureau also publishes an establishment survey of nonfarm employment, which excludes self-employed individuals. The February total was up 0.1% from January, 3.1% from February 2022, and 10.3% from February 2018.

Puerto Rico bondholders keep an eye on Puerto Rico economic activity as an indicator of the likely direction of Puerto Rico government and public utility revenues.

Last week Puerto Rico Gov. Pedro Pierluisi said Puerto Rico's economy was growing after declining for more than a decade.

In early March, U.S. District Court Judge Laura Taylor Swain voided a labor law passed by the local government in 2022. The Oversight Board said this was a win for Puerto Rico's future economic growth.