PMA Business Cycle Index (PMABCI) – July 2024

Stability in the West Bank and collapse in the Gaza Strip

The PMA Business Cycle Index (PMABCI) revealed that the overall index for Palestine stabilized in July 2024 at -16.5 points compared to the previous month. However, it remained at low levels, owing to uncertainty and the ongoing of the unprecedented Israeli aggression, especially in the Gaza Strip.

In the West Bank, the overall index stabilized at -12.5 points in July 2024, compared to the previous month, with sub-indices experiencing a mixed performance, as the manufacturing index stabilized at -4.7 points, the agriculture index at 0.3 points, the construction index at around -2.0 points, the trade index at -5.8 points, and the IT and communications index at 0.0 points, while the renewable energy index increased from (from -0.4 to 0.3), the transportation and storage index decreased (from -0.1 to -0.6).

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

As for the Gaza Strip, the ongoing Israeli aggression has caused many negative effects, and 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.