The results of the Palestinian Monetary Authority Business Cycle Index (PMABCI) revealed a decrease in the overall index, from a negative 5.7 point in January to a negative 11.2 point in February due to the significant drop in the West Bank, accompanied by a lesser decrease in Gaza Strip, today said the PMA in a press release.
In the West Bank, the overall index declined from a negative 0.6 point during January to a negative 6.6 during February after some sub-indices being affected by the increase of production cost, which in turn led to an increase in prices, according to the served firms, and consequently a decline in the purchasing power of the consumer.
This drop was led by the decrease in the manufacturing index (from 0.7 to negative 5.8), in addition to a decline in the construction index (from 0.7 to negative 1.7) and the IT and communication index (from 1.0 to 0.6). In contrast, the agricultural index increased (from 0.4 to 3.6), accompanied by the rise in the renewable energy index after a long period of stabilization (from 0.0 to 0.7). In the meanwhile, the trade index stabilized around negative 4.5 points, and the transportation and storage index stayed around 0.6 points.
As for Gaza Strip, the overall index has declined from negative 31.9 points in January to negative 34.7 points in February, as a result of the decline in some sub-indices. The only exception was the construction index, which increased (from negative 10.1 to negative 7.2) due to the removing the rubble of May’s war.
However, the drop of the Gaza index was led by the decrease in the agricultural index (from 2.4 to negative 1.2), followed by the transportation and storage index (from negative 0.8 to negative 1.9), and the manufacturing index (from negative 4.3 to negative 5.3). Hence, the remaining indices remained relatively stable around negative 15.6 points for the trade index, negative 1.9 points for the IT and communication index, and finally negative 3.2 points for the renewable energy index.
In general, said the PMA, the surveyed firms in West Bank and Gaza Strip pointed to an uneven drop in production and sales levels, which resulted in an increase in inventory level. However, their expectations for production level in the next three months were positive, while the expected employment level in the near future diverged, between an increase in the West Bank and a stabilization in Gaza Strip.
Source: Palestinian News & Info Agency (WAFA)