The PMA Business Cycle Index (PMABCI) – September 2022

A drop in West Bank and Gaza Strip

The results of the PMA Business Cycle Index (PMABCI) revealed that the overall index for Palestine declined from 0.2 points in August to -5.0 points in September after it dropped in both West Bank and Gaza Strip.

The overall index in West Bank decreased from 3.8 points in August to -1.7 points in September, due to the decline in the construction index (from 0.5 to -4.1), in addition to a decrease in the manufacturing index (from 4.9 to 2), opposite to the increase in the trade index (from -4.7 to -2.0). In the meanwhile, the agriculture index remained stable at 1.3 points, in addition to the stability of the transportation and storage index at around 0.5 points, as well as renewable energy, IT, and communications indices were stabilized at around 0.5 points, and 0.1 points, respectively.

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

In Gaza Strip, the overall index declined from -18.7 points in August to -21.8 points in September, as the agriculture index decreased (from 0 to -2.4), the trade index dropped (from -7.3 to -9), and the construction index (from -7.5 to -8.8). On the other hand, the manufacturing index increased (from -1.7 to -0.3), and the transportation and storage index increased (from 0.0 to 0.8). Whereas the renewable energy, IT, and communications indices remained stable at around -2.1 points and 0.0 point, respectively.

Firms’ owners in Gaza Strip indicated a decline in both production and sales levels, with their expectations being negative about production and employment levels for the next three months.