The PMA Business Cycle Index (PMABCI) – August 2022

Improvement in West Bank and Gaza Strip

The results of the PMA Business Cycle Index (PMABCI) revealed that the overall index for Palestine has improved from -1.0 points in July, to 0.2 points in August, due to its improvement in both the West Bank and Gaza Strip.

The overall index in the West Bank relatively increased from 3.2 points in July, to 3.8 points in August. This increment refers to the notable improvement in the manufacturing index (from 1.6 to 4.9), in addition to an increase in the transportation and storage index (from 0 to 0.6), and the IT and communications index (from –1 to 0.5). On the other hand, the index of construction declined (from 1.4 to 0.5), and the trade index (from -1.9 to            -4.7). In the meanwhile, the renewable energy index was stable at around 0.6 points, and the agriculture index was stable at 1.3 points.

In general, expectations of firms’ owners in the West Bank indicated a decline in production level, and an increase in sales level, therefore a decrease in inventory level. Furthermore, their expectations were positive about production levels for the next three months.

In Gaza Strip, the overall index improved from -22.7 points in July to -18.7 points in August, due to a recovered agriculture index (from -4.8 to 0.0), with an increase in the trade index (from -9.0 to -7.3), and the transportation and storage index (from -0.8 to 0.0). On the other hand, the manufacturing index declined (from -1.0 to -1.7), the renewable energy (from 0.0 to -2.1), and the construction index (from -6.9 to -7.5). In the meanwhile, the IT and communications index remains stable as in the previous month, at around -0.1 points.

Firms’ owners’ expectations in Gaza Strip indicated a decrease in both production and sales levels, with an increase in inventory level. In spite of that, expectations were positive about the production and employment levels for the next three months