Confidence Indexes Reflect Cautious Outlook Among Puerto Rican Entrepreneurs and Consumers Amid Economic Uncertainty
San Juan, Puerto Rico – The Puerto Rico Chamber of Commerce (CCPR) has released the results of the 2025 Puerto Rican Business Confidence Index, along with the latest findings from the Puerto Rican Consumer Confidence Index (CCI), conducted by Estudios Técnicos, Inc. and Nielsen Consumer LLC, respectively. Both studies reflect a climate of economic caution, marked by high costs, perceptions of a recession, and uncertainty about the island’s economic future.
The 2025 Puerto Rican Business Confidence Index, based on a sample of 216 participants, showed a decrease compared to 2024. It revealed a moderate level of confidence and a cautious stance from the business sector in light of the overall economic outlook. Although 60.6% of respondents believe Puerto Rico is currently in a recession, business owners still hold moderately positive short-term expectations, with 63% anticipating an increase in sales over the next six months. However, there is limited intention to expand or create new jobs.
Among the main challenges affecting business operations are energy costs (45.8%), tax burden (44.4%), and the general economic situation (42.6%), followed by government bureaucracy and labor shortages—especially among medium and large-sized companies.
“These results highlight the pressures facing the private sector, particularly in terms of operational costs. At the same time, they confirm that Puerto Rican entrepreneurs continue to demonstrate resilience and a willingness to invest and generate employment. The Chamber of Commerce reiterates the urgent need for the private sector, government, and legislature to work together to address these challenges and foster a sustainable, competitive business environment,” stated Attorney Margaret Ramírez Báez, President of the PRCC.
The report also notes that 84.1% of business owners believe that product and service costs continue to rise, with 36.6% attributing these increases to tariffs. These tariffs have negatively impacted 63.2% of the businesses surveyed. The study warns that Puerto Rico’s economic recovery is highly dependent on non-recurring federal funds, while Gross National Product (GNP) projections anticipate economic contractions beginning in 2025. This underscores the need for public policies focused on sustainable growth and the development of the private sector. In terms of business transformation, 57.4% of companies reported using e-commerce platforms, and nearly half have alternative sources of energy or water as part of their operational continuity strategies.
Puerto Rican Consumer Confidence Index
From the consumer perspective, the Puerto Rican Consumer Confidence Index, conducted by Nielsen with a sample of 510 individuals, registered 91 points—a four-point decrease compared to 2024, although still above the historical average. The study reveals a more cautious and less optimistic consumer, especially regarding future economic stability. According to the report, 86% of consumers believe Puerto Rico is in a recession, and nearly four out of ten expect the economic situation to worsen over the next six months. Only 21% foresee improvement, reflecting a more pessimistic outlook than in previous years.
“Inflation remains the top concern among consumers, followed by energy security, education, and overall safety. As a result, saving has become a structural behavior. Seventy-nine percent of consumers have modified their spending habits, mainly by reducing their budgets for entertainment, household services, and monthly food purchases,” explained Tatiana Irizarry Hilera, Sales Lead for Consumer & Marketing Insights.
Despite adjusted consumption patterns, the average monthly spending on food and household products has reached its highest level since 2019, averaging $632, primarily at chain supermarkets. While 72% of consumers shop online at least once a month, there has been no growth compared to 2024. In-person shopping shows a slight decline in frequency but remains the dominant format.
Both indexes indicate that entrepreneurs and consumers alike are navigating an environment of high economic uncertainty driven by inflation, recession concerns, and low confidence in the current outlook. Nevertheless, they also reflect an ability to adapt and implement strategic adjustments.
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