Puerto Rico Consumer Index remains within fragility range

By The Star Staff

The Puerto Rico Consumer Financial Fragility Index, developed by the economic firm Estudios Técnicos Inc. (ETI), remained within the moderate fragility range during the first half of 2025, when compared to the average levels seen in 2024.

In the first quarter of 2025, the index was recorded at 0.33, which rose slightly to 0.38 in the second quarter. However, despite this uptick, the index shows a notable improvement from the 2024 average of 0.52, which indicated a higher level of financial instability.

Leslie Adames, director of ETI’s Economic Policy and Analysis Division, highlighted the progress in a written statement.

Adames pointed out that a drop in unemployment, a decrease in personal bankruptcies, fewer delinquencies on consumer and mortgage loans, and an increase in real wages have all played a role in this positive shift. Nonetheless, he warned that the second quarter brought a slight downturn, attributed to rising loan delinquencies and an uptick in personal bankruptcies.

Looking ahead, he noted that the future trend of the index would depend on inflation rates and the effects of new federal tariffs. While a potential cut in the Federal Reserve’s benchmark interest rate could ease financing costs, concerns around household debt, available liquidity, and labor market conditions continue to linger.