The results of the Palestinian Monetary Authority Business Cycle Index (PMABCI) revealed a sharp decline in the overall index for Palestine, from 1.7 points in May to -4.7 points in June. This decline may be due to the rise of uncertainty and the high increase in the prices of goods and services, said the PMA in a report published today.
The overall index in West Bank decreased from 4.1 points in May to -1.2 points in June. This decline was headed by the construction index with a notable drop (from 2.9 to -2.4), in addition to a decline in the trade index (from -1.3 to -2.4), and IT and communication index (from 0.5 to -0.2). On the other hand, the index of the agriculture sector increased (from -0.9 to 0.0), followed by the manufacturing index (from 1.6 to 2.1), as well as the transportation and storage index (from 0.6 to 1.1). In the meanwhile, the renewable energy index remained relatively stable at around 0.6 points.
In general, company owners in the West Bank indicated a decline in production levels, as well as in inventory. Furthermore, their expectations were negative about production and employment levels for the next three months, said the PMA.
As for Gaza Strip, the index declined from -10.4 points in May to -22.6 points in June. Hence, most of the sub-indices declined during this period, except for the renewable energy index, which increased (from 0.0 to 1.1). This decline includes the agriculture sector index (from 1.2 to -4.8), manufacturing index (from 0.4 to -2.7), trade index (from -3.3 to -5.7), and transportation and storage index (from 1.5 to 0.0). On the other hand, IT and communications, and construction indices were stabilized at around -0.3 points, and -10.1 points, respectively.
Owners of companies in the Gaza Strip indicated a decrease in both production and sales levels that caused a decline in inventory level. Moreover, their expectations were negative about production and employment levels for the next three months, according to the PMA.
Source: Palestinian News & Info Agency (WAFA)