The PMA Business Cycle Index (PMABCI) – August 2023

Stability in the West Bank and a decline in Gaza Strip

The results of the PMA Business Cycle Index (PMABCI) revealed that the overall index for Palestine relatively declined during August to 5.3 points, compared to 5.9 points in July, mainly due to its decline in the Gaza Strip.

The overall index in West Bank stabilized at around 8.1 points in August, compared to 8.2 points in July. This resulted from an increase in the construction index (from -0.2 to 0.5), trade index (from 0.4 to 1.0), and transportation and storage index from (-0.4 to 0.3). On the other hand, manufacturing index has declined (from 6.4 to 4.4). While, the Agriculture index, the renewable energy index, and the IT and communications index, were stabilized at around 1.8, 0.4, and – 0.3 points, respectively.

Firms’ owners in the West Bank reported an increase in production levels and a decrease in inventory and sales volume. Furthermore, their expectations were positive regarding employment levels for the next three months.

In Gaza Strip, the overall index declined from -5.5 points in July, to -9.1 points in August. Where the agriculture index decreased (from 0.0 to -4.8), and the transportation and storage index from (2.3 to 0.8). On the other hand, the manufacturing index increased (from 0.0 to 1.5), the trade index (from -6.6 to -5.8), and the construction index (from -5.2 to -4.6). Whereas, the renewable energy index stabilized at around 3.7 points, and the IT and communications index stabilized at around 0.2 points.

Firms’ owners in the Gaza Strip indicated a decrease in production levels, with a decrease in the volume of inventory and sales. However, their expectations about production and employment levels for the next three months were positive.