Drop in oil prices a boon for Puerto Rico consumers, businesses

An excerpt of the news:


“The local savings generated by the drop in oil prices was estimated earlier this year to be in excess of $2 billion by Juan Lara, chief economist at local firm Advantage Business Consulting.

While the effect of the drop in oil prices is positive, José Joaquín “Joaco” Villamil, chairman & CEO of Estudios Técnicos Inc., warned it wouldn’t be a game-changer with respect to the island’s economy.

In Villamil’s view, this is due to several reasons: the island’s consumption of petroleum products has declined significantly; the portion of natural gas as an energy component has been increasing; local consumers have become more efficient in their energy use; and savings from the drop in oil prices will go mainly toward spending rather than investments.”


Read the whole post by Jose L. Carmona here

Consumer spending is growing!

The U.S. consumer has under-spent in the current economic expansion. In the 72 months since June, 2009, when the expansion officially began, consumer spending, adjusted for inflation, has increased only 14.0%, or 2.2% per year. In the four previous economic expansions (which began in 1975, 1982, 1991 and 2001) consumer spending increased an average of 3.5% per year over the same 72 month period. The consumer is the most critical driver of U.S. economic growth, accounting for approximately 68% of gross domestic product (GDP). To get a sense of the impact of this underperformance, if consumer spending growth in the current cycle matched the average of the preceding four expansions, U.S. GDP growth during the expansion would have averaged a very respectable 3.0% per year instead of the anemic 2.1% per-year growth the economy has actually recorded.

Recently, consumer spending has begun to grow more strongly. After increasing at an average annual rate of 1.9% in the first three years of the expansion, real consumer spending has expanded by 2.8% per year over the past year and a half. This acceleration in spending has coincided with rising consumer confidence. In the first four years of the expansion there was very little improvement in consumer confidence as measured by the University of Michigan’s Index of Consumer Sentiment. To be sure, confidence rose and fell with economic and political changes over that time, but in October 2013, the Index stood at 73.1, not much higher than the 70.1 reading recorded four years earlier in October 2009 just after the recession ended. Since October 2013, confidence has jumped sharply. Today’s reading of 92.9 is 26.9% above the level of October 2013.

Consumers’ improving view of the current situation has been an important reason for the rise in confidence and spending. When consumers are surveyed for this index they are asked two kinds of questions, those related to the current situation (Is your income higher than a year ago? Do you think the economy is better today than a year ago?), and those related to expectations about the future (Do you expect your income to rise in the next 12 months?). Consumers are much more optimistic today about the current situation than the future. Basically the attitude can be summed up as “I am a little worried about where things are going, but I am doing fine.”

Cushman & Wakefield and DTZ have officially merged!

The successful completion of the merger between Cushman & Wakefield and DTZ was announced on September 1st, creating one of the LARGEST commercial real estate firms in the world. With a combined total of $5 billion in revenue, 43,000 employees, more than 4.3 billion square feet under management, and $191 billion in transaction value, Cushman & Wakefield will be led by Chairman & Chief Executive Officer Brett White and Global President Tod Lickerman. Cushman & Wakefield has built a team that will provide the experience, management skill, business acumen, and client-service expertise necessary to bring an aggressive growth strategy and global platform to life. The new leadership has developed an operating model to organize and mobilize for clients locally, regionally, and globally.

Read the complete story here!

Another win for our agency leasing team!

Sprint Expands in Puerto Rico- NEW! Stores in Rexville Town Center & Trujillo Alto Plaza

Sprint announced it will open about 25 new stores around the island in line with the growth plans announced last year by its chief executive Marcelo Claure, when he visited the country a year ago. At that time, Claure had announced that the Puerto Rico market would receive particular attention in the development of the new Hispanic markets division, by investing in more outlets, as well as in building the new and advanced Sprint Spark network, with a 2.5 Mhz technology.

The expansion has already begun this month with the first two stores, one in Rexville Town Center in Bayamon and one in Trujillo Alto Plaza. By the end of this year they planned to have other facilities in Ponce and Yauco, among other regions, culminating this first phase during the first quarter of 2016.

“We are excited and confident by the success of our company and the opportunity that arises for our island in the creation of new jobs. Puerto Rico has much to offer and we are part of the movement that believes in the emergence of a stronger economy to our island. We have a high quality labor force, with professionals prepared and ready to win in the industry and we invite you to come to Sprint, “said Eaves

This past Saturday, August 15, the official opening of the store in Rexville Town Center was held, while the Trujillo Alto will be held next week, on August 21. In both activities they will offer special prices and free activation, 50% discount on accessories and raffles of attractive accessories, tablets and smartphones.