The PMA Business Cycle Index (PMABCI) – July 2022

Improved in West Bank and stabilize in Gaza Strip

The results of the PMA Business Cycle Index (PMABCI) revealed an increase from -4.7 points in June to -1.0 points in July in the overall index for Palestine, due to the improvement of the index in the West Bank against stabilization in Gaza Strip.

The overall index in West Bank increased from -1.2 points in June to 3.2 points in July. This refers to the notable improvement in the construction index (from -2.4 to 1.4), in addition to the increase in the agriculture index (from 0.0 to 1.3), and the trade index (from –2.4 to –1.9). On the other hand, the index of transportation and storage declined (from 1.1 to 0.0). Meanwhile, the manufacturing index remained relatively stable at around 1.6 points, the renewable energy index at around 0.8 points, and the IT and communications index stabilized at -0.1 points.

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

On the other hand, the overall index in Gaza Strip remained relatively stable in July at           -22.7 points, compared with -22.6 points in June to -22.7 points in July. In more detail, the trade index declined (from -5.7 to -9), followed by the renewable energy index (from 1.1 to 0.0), and the transportation and storage index (from 0.0 to -0.8). On the contrary, the construction index increased (from –10.1 to –6.9), followed by the manufacturing index (from -2.7 to -1.0). However, the agriculture index remains stable at around -4.8 points and the IT and communications index at around -0.3 points.

Moreover, firms’ owners in Gaza Strip indicated an increase in production and sales levels with an increase in inventory. However, their expectations were negative about production and employment levels for the coming three months.