The results of Palestine Monetary Authority’s Business Cycle Index (PMABCI) has revealed a slight recovery during June, recording -14.9 point compared to -17.7 points in May, which was driven by a notable improvement in the West Bank.
In the West Bank, the index rose from -4.1 point in May to 5.3 point during June, the best-recorded level in the last couple of years, affected by the relief in the COVID-19 containment measures as well as vaccination of a relatively significant number of people.
This upward trend covers most of the sup-indices, excluding the construction index that decreased (from -0.5 to -1.0). The trade index managed to register the biggest increase among all indices (from -4.9 to 0.3) due to the increased market activity. The transport and storage index rose from -0.8 to 1.2 after freeing the movement and lifting restrictions specially on the public transportation, and the improvement in the manufacturing index (from -1.0 to 1.0).
In addition, there were marginal pick-ups in agricultural index (from 3.1 to 3.6), and the IT and communication index (from 0.0 to 0.2). At the meantime, the renewable energy index stayed relatively stable at around 0.0 points.
In general, according to the respondent firms in West Bank, there was an increase in production levels accompanied with a faster pace in sales levels, which led to a decrease in inventory. In light of that, firms expressed optimistic expectation in the next three months for the employment and production levels.
In the meantime, the respondent firms in Gaza strip pointed to an exceptional fall in production and sales levels after the damages in markets and buildings due to the Israeli airstrikes and bombing on Gaza during the Israeli aggression in May. However, the cut in production exceeded the drop in sales, which caused a small reduction in inventory. In the meanwhile, expectations for employment and production levels in the near future were negative, reflecting the uncertainty of the coming period.