Economy

A slight improvement in the value of the PMA business cycle index

Ramallah (INA) - The results of the Palestine Monetary Authority’s business cycle index for June 2017 showed a slight increase in the value of the index in light of similar growth trends in both the West Bank and Gaza Strip. As a result, the value of the overall index improved from -0.4 points last May to about 0.2 points this month, but while remaining much lower than its level in June of last year, which reached 10.5 points. The West Bank index continued to improve during June, but very marginally, rising to 14.4 points compared to 14.2 points last May. This comes amid limited movements in indices of all industrial activities, as indices of industries rose; Food, textile, paper, plastics, and engineering industries. On the other hand, the declines affected indicators; Leather industry, traditional industries, pharmaceutical and chemical industries, and construction industries, while the furniture industry index maintained the same previous level. This slight improvement in the West Bank index comes in light of a slight increase in the level of production and sales, according to what was indicated by the owners of industrial establishments whose opinions were surveyed. But on the other hand, facility owners expressed concerns about the level of future production during the next three months. In the same way, the rise in the Gaza Strip index was limited, from -38.6 last May to about -37.2 points during this month, and this comes against the backdrop of a relative improvement in the paper industry and engineering industries indicators. On the other hand, the indicators of the rest of the sectors remained relatively stable compared to the previous month. Despite the extreme fluctuation of indicators of industrial activities in the Gaza Strip, all of them (with the exception of the food industry) continued to remain stable in the negative zone for the fourth month in a row, in addition to the fact that the overall index in Gaza has remained in the negative zone for more than forty consecutive months, which is This reflects the continuation of the deteriorating political and economic conditions in the Strip, including the continued siege and closure, the slow reconstruction process, and others. In the same context, all owners of industrial establishments reported the continuation or decline of performance indicators during the month (production, sales) without any indication of improvement during the month. However, on the other hand, the owners of establishments expressed a less pessimistic view about the near future, which pushed the overall index to the relative increase mentioned above. (End) Khaled Al-Khalidi / Z A / H P

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