The PMA Business Cycle Index (PMABCI) – January 2023

Improvement in West Bank and Gaza Strip

The results of the PMA Business Cycle Index (PMABCI) revealed that the overall index for Palestine has increased from 2.5 points in December 2022, to 4.9 points in January 2023, due to its improvement in both the West Bank and Gaza Strip.

In the West Bank, the overall index increased from 5.0 points in December, to 7.6 points in January. Affecting by the notable improvement in the construction index (from –1.7 to 1.0), in addition to an increase in the renewable energy index (from -0.2 to 0.2), and increment of the transportation and storage index (from 0.4 to 1.1), while agriculture index decreased (from 3.6 to 2.2). Whereas the manufacturing index was stable at around 3.4 points, the trade index, and IT and communications indices were stabilized at around -0.4 point, and 0.0 point, respectively.

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

In Gaza Strip, the overall index increased from -10.3 points in December to -9.3 points in January, as the construction index increased (from -3.9 to -2.9), and the agriculture index increased (from 1.2 to 3.6), while the trade index decreased (from -8.8 to –10.1). In the meantime, the manufacturing index was stable at 3.6 points, the renewable energy index at -3.7 points, in addition to stabilize of the transportation and storage index, and the IT and communications index at around 0.4 points, and -0.1 points, respectively.

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