The PMA Business Cycle Index (PMABCI) – July 2023

A drop in the West Bank and stability in Gaza Strip

The PMA Business Cycle Index (PMABCI) results revealed that the overall index for Palestine has declined from 14.2 points in June to 5.9 points in July, due to a decrease in the West Bank and stabilized in Gaza Strip.

The overall index in the West Bank decreased notably from 18.0 points in June to 8.2 points in July. In more detail, the construction index decreased (from 4.9 to -0.2), the trade index decreased (from 2.8 to 0.4), the renewable energy index (from 0.6 to 0.2), the transportation and storage index (from 0.8 to -0.4) and the IT and communication index (from 0.3 to -0.1). While, the manufacturing as well as agriculture indices stabilized at around 6.4 points and 1.8 points, respectively.

Firms’ owners in the West Bank indicated decreased in production, sales, and inventory levels. Furthermore, their expectations were negative about production and employment levels for the upcoming three months.

In Gaza Strip, the overall index stabilized at around -5.5 points in July as in the previous month. The sub-indices have a mixed performance, where the construction index decreased (from -3.6 to -5.2), and the trade index (from -3.9 to -6.6). On the other hand, the manufacturing index increased (from -1.4 to 0.0), the agriculture index increased (from -1.2 to 0.0), the transportation and storage index improved from (1.1 to 2.3), and the renewable energy index increased (from 3.2 to 3.7). In the meanwhile the IT and communications index stabilized at around 0.3 points.

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

PMA Business Cycle Index (point)*

Source: PMA (2023). PMABCI, July 2023.

* The maximum value is +100 (favorable economic performance), while the minimum is -100 (economic deterioration).