The PMA Business Cycle Index (PMABCI) – September 2023

A drop in both the West Bank and Gaza

Results of the PMA Business Cycle Index (PMABCI) revealed that the overall index for Palestine has declined from 5.3 points in August to 1.8 points in September, due to a decrease in both the West Bank and the Gaza Strip.

The overall index in the West Bank declined from 8.1 points in August to 4.8 points in September. This is mainly due to a decline in agriculture index (from 1.8 to -2.2), manufacturing index (from 4.4 to 4.2), and construction index (from 0.5 to 0.2). On the other hand, the transportation and storage index increased (from 0.3 to 0.9), and the IT and communications index increased from (-0.3 to 0.5). In the meanwhile, the indices of renewable energy and trade were stabilized at around 0.2 points, and 0.9 points, respectively.

Firms’ owners in the West Bank indicated an increase in production and inventory levels and a decrease in sales levels. Furthermore, their expectations were negative about production levels for the next three months.

In the Gaza Strip, the overall index decreased from -9.1 points in August to -13.7 points in September. Where the agriculture index decreased (from -4.8 to -6.0), the renewable energy index decreased (from 3.7 to 2.1), and the construction index decreased (from -4.6 to -6.9). However, the manufacturing index stabilized at around 1.7 points, the trade index at around -5.9 points, the transportation and storage index at 1.1 points, and the IT and communications index at 0.2 points.

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