The PMA Business Cycle Index (PMABCI) – December 2022

Improvement in the West Bank and Gaza Strip

The results of the PMA Business Cycle Index (PMABCI) revealed an increase in the overall index for Palestine from -1.8 points in November to 2.5 points in December. After its improvement in both regions, West Bank and Gaza Strip.

The overall index in West Bank increased from 0.8 points in November to 5.0 points in December. This increase refers to the notable improvement in trade index (from -2.6 to  -0.4), in addition to an increase in agriculture index (from 2.2 to 3.6), and transportation and storage index (from -0.4 to 0.4). At the same time, manufacturing index remained stable at around 3.2-point, construction index at -1.7 point. In addition, IT and communications, and renewable energy indices at around 0.3 point, and -0.2 point, respectively.

In general, firms’ owners in West Bank indicated a decrease in the level of production and sales, as well as in the inventory, while their expectations were positive about production and employment levels for the next three months.

In Gaza Strip, the overall index increased from -15.1 points in November to -10.3 points in December. This resulted from the increase of manufacturing index (from 1.8 to 4.1), agriculture index (from –1.2 to 1.2), renewable energy index (from -4.8 to -3.7), and transportation and storage index (from 0.0 to 0.8). On the contrary, construction index decreased (from -2.9 to -3.9), while, trade index, and IT and communications indices were stabilized at around -8.8 points, and 0.0 point, respectively.

Firms’ owners in Gaza Strip indicated to an increase in production level, a decrease in sales level, and improvement in inventory level. Moreover, their expectations were positive about production and employment levels for the next three months.