PMA Business Cycle Indicator
The PMA has begun, since 2013, producing the first business cycle indicator on the national level, namely, the PMA Business Cycle indicator “PMABCI”. This indicator aims at capturing the state and evolution of the Palestinian business environment, reflecting fluctuations in production and economic activity over time. The construction of the indicator is based on qualitative data obtained from monthly business surveys of a representative sample of firm owners/mangers on the value of various leading indicators during a specified period, and their expectations for the coming months. Subsequently, the data is processed to construct a quantitative PMABCI. The maximum value of this indicator is a positive 100, while the minimum is minus 100. The bigger the positive value, the better the economy is, and the opposite is true for the negative value. On the other hand, a value close to zero indicates that economic performance did not change and is unlikely to do so in the near future.More..