PMA Business Cycle Index (PMABCI) – August 2024

Continued decline in the overall index

The PMA Business Cycle Index (PMABCI) revealed that the overall index for Palestine has declined from -16.5 points in July to -17.8 points in August, due to the uncertainty and the ongoing of the unprecedented Israeli aggression.

In the West Bank, the overall index declined from -12.5 points in July to -13.9 points in August. This is due to a decline in the agriculture index (from 0.3 to -1.3), the renewable energy index (from 0.3 to -0.3), and the transportation and storage index (from -0.6 to -0.1). However, the manufacturing index stabilized at -4.7 points, the trade index stabilized at around -5.7 points, in addition to a stabilization of the construction index at -1.7 points, and the IT and communications index at -0.1 points.

Respondent firms in the West Bank reported an increase in production levels, with a decline in sales, and stabilization of inventory levels. Furthermore, the respondents' expectations regarding production and employment levels for the next three months were negative.

As for the Gaza Strip, the ongoing Israeli aggression has caused many negative effects. Given the difficult economic conditions, the index for the Gaza Strip is expected to remain at its lowest levels, around -100 points, during the period of the ongoing Israeli aggression since the beginning of October 2023, until the time of preparing this report.