Business Cycle Indicator Decreases in September, says Monetary Authority

RAMALLAH, September 15, 2013 (WAFA) – The Palestine Monetary Authority (PMA) Sunday said, in a press release, that during September 2013, the Business Cycle indicator (PMABCI) has witnessed a further decline from 4.65 during August to -5.15 in September.

During September 2013, the PMABCI witnessed further decline where it decreased from -3.88 to -6.47 as a result of enormous  decrease in the West Bank (WB) indicator from 4.65 during August to -5.15 during September, compared with a minute improvement in Gaza Strip (GS) indicator from -7.15 to -8.32, in the same period.

The PMABCI is a monthly index which aims to capture the state and evolution of the Palestinian business environment, reflecting fluctuations in production and economic activity overtime based on developments in the industrial sector.

The decline in the WB comes mainly as a result of a decline in the indicator in both textile and furniture sector, which form together more than one third of the WB industry. Textile sector indicator declined from 5.03 to 2.52, while furniture sector indicator decreased from 1.63 to -3.25 during the period of comparison, said the press release.

On the other hand, GS indicator has witnessed a minute improvement during September, reflecting the steadiness of most sub-industrial sectors without any significant changes.

Steadiness is a sign of stability in the economic conditions in the specified period reflecting the steadiness of the influencing economic and political factors. In GS, the same political conditions related to the Israeli siege and political schism are still dominant; in addition there was the recent political unrest in Egypt, especially in the last two months, and its influences  on Gazan economy through affecting the free mobility of individuals and goods both ways.

It is important to notice that the maximum value of this indicator is positive 100, while the minimum is minus 100; a positive value indicates favorable economic performance, and the bigger this value, the better the economy is. But if the value is negative, then economic performance is worsening the closer it gets to minus 100.

On the other hand, a value close to zero indicates that economic performance did not change and is unlikely to do so in the near future.

source:WAFA NEWS