PMA Business Cycle Index (PMABCI) – February 2025

Improvement in the overall index

The results of the PMA Business Cycle Index (PMABCI) showed an improvement in the overall index in Palestine during February 2025, recording (–11.8) points, compared to (–31.1) points in January 2025. This improvement is attributed to the of the business owners’ optimism regarding increased production and sales, in light of the ceasefire agreement and the advent of the holy month of Ramadan.

Despite this improvement, the index remains at low levels due to ongoing uncertainty and the unprecedented Israeli escalation in both the Gaza Strip and the West Bank.

The overall index in the West Bank, improved from (–22.2) points in January 2025, to (–2.9) points in February 2025, driven by an increase in most sub-indices, where the industrial index increases from (–4.4 to –1.2), agriculture index from (–1.2 to 2.2), trade index from (–9.2 to –3.3). Moreover, the construction index improved (from –4.8 to –0.1), as well as the transportation and storage index increased (from –1.5 to –0.2). Meanwhile, the renewable energy index remained stable at (–0.1) points, and the IT and communications index stabilized at (–0.2) points.

On the other hand, respondent business owners in the West Bank indicated an improvement in production, sales, and inventory levels, along with positive expectations for production levels over the next three months.

As for the Gaza Strip, with the ceasefire in effect, the research team was able to collect limited data on the performance of the industrial sector in Gaza. These findings indicate a relative improvement in the overall index to around (–80) points in February 2025, compared to the extremely low level of (–100) recorded during the previous period of escalation since the beginning of the Israeli aggression in October 2023.