PMA Business Cycle Index (PMABCI) – August 2025 Decline in the West Bank, Paralysis in Gaza strip
The results of the PMA’s Business Cycle Index (PMABCI) indicated a decline in overall business activity in Palestine during August 2025, as the composite index decreased to -22.2 points, compared to -21.5 points in July 2025. The index remained at a persistently low levels, indicating the continued fragility in the economic environment and reflecting the ongoing uncertainty induced by the unprecedented Israeli aggression against both Gaza Strip and the West Bank.
The overall index in the West Bank declined from -19.4 points in July 2025 to -20.2 points in August 2025. However, this decline, is primarily attributed to the weakened performance of main economic sectors, as follows:
- The Industrial index decreased from -5.3 to -5.9 points.
- The agriculture index decreased from -0.5 to -1.0 points.
- The IT and communications index decreased from -0.1 to -0.6 points.
Conversely, the construction index increased from –3.8 to -3.4 points, and the transportation and storage index increased from -0.9 to -0.5 points. While the trad index stable at around -8.5 points, also renewable energy index stable at around -0.2 points.
The business owners surveyed in the West Bank reported lower production and sales levels, and increase in inventory levels. Furthermore, the respondents' expectations regarding production and employment levels for the next three months were positive.
As for the Gaza Strip, it continues to suffer from an almost economic paralysis due to the ongoing Israeli aggression, which caused an extensive destruction of infrastructure and halted all aspects of life. Under these catastrophic conditions, the overall index for Gaza is expected to remain at its lowest level around -100 points, indicating an almost complete halt in economic activity across Gaza Strip.

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