PMA Business Cycle Index (PMABCI) – December 2025 Slight Improvement in Overall Index

The results of the PMA’s Business Cycle Index (PMABCI) indicated a slight improvement in overall business activity in Palestine during December 2025, as the composite index increase to -25.2 points, compared to -26.1 points in November 2025, in this context the index remains at negative levels, reflecting the ongoing uncertainty caused by the unprecedented Israeli aggression against both Gaza Strip and the West Bank.

The overall index in the West Bank increased from -10.5 points in November 2025 to         -9.4 points in December 2025. Most of this improvement driven by increase in the performance of several economic sectors, as follows:

• The Industrial index increased from -3.7 to -1.2 points.
• The agriculture index increased from -1.7 to -0.2 points.

Conversely, the construction index decreased from -1.6 to -2.6 points, and Trade index decreased from -3.4 to -4.7 points, in addition to decrease in transportation and storage index from 0.4 to -0.2 points. While, the IT and communications index stable at around -0.3 points, and renewable energy index stable at around -0.1 points.

The results in the West Bank indicated to a decline in production and sales levels, in addition to decrease in inventory levels. Furthermore, the respondents' expectations regarding production levels for the next three months were positive.

As for the Gaza Strip, Gaza continues to suffer from a near-total economic paralysis due to the ongoing Israeli assault, which has inflicted extensive destruction on infrastructure and all aspects of daily 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 the Strip.