PMA Business Cycle Index (PMABCI) – October 2025

A slight improvement in overall index

The results of the PMA’s Business Cycle Index (PMABCI) indicated slight improvement in overall business activity in Palestine during October 2025, as the composite index increase to -18.6 points, compared to -20.8 points in September 2025. In this context the index remains at deeply negative levels, reflecting the ongoing uncertainty due to the unprecedented political unrest and tension.

The overall index in the West Bank increased from -18.5 points in September 2025 to -16.1 points in October 2025. This is due to the improvement of trade sector, mainly, in addition to other economic sectors, as follows:

• The Trade index increased from -7.4 to -5.2 points.
• The agriculture index increased from -1.0 to -0.7 points.
• The IT and communications index increased from -0.6 to -0.2 points.

Conversely, the Industrial index was stable at around -5.7 points, construction index at around -3.8 points, the transportation and storage index at around -0.5 points, and renewable energy index was stable at around -0.1 points.

The business owners surveyed in the West Bank reported an increase in production level, and a decrease in inventory levels. However, the respondents' expectations regarding production levels for the next three months were negative.

As for the Gaza Strip, it continues to suffer from an almost full economic paralysis due to the ongoing Israeli aggression, which has inflicted extensive destruction on infrastructure and all aspects of daily life. Under these catastrophic conditions, the overall index for Gaza Strip is expected to remain at its lowest level around –100 points, indicating an almost complete halt in economic activity across the Strip.