Press release PMA Business Cycle Index (PMABCI) – June 2025 Overall Index Continues to Decline Amid Escalating Aggression and Mounting Uncertainty

The PMA Business Cycle Index (PMABCI) results show a continued decline in the overall index in Palestine reaching -32.9 points in June 2025 compared to -26.8 points in May 2025. The decline reflects the persistent uncertainty in the region, driven by the ongoing of the unprecedented Israeli aggression in both Gaza Strip and West Bank.

The latest results of the Palestine Monetary Authority’s Business Cycle Index (PMABCI) indicate a continued decline in overall economic activity at the national level. The overall index fell to -32.9 points in June 2025, compared to -26.8 points in May. This downturn is attributed to the deepening uncertainty driven by the ongoing and unprecedented Israeli aggression against both the Gaza Strip and the West Bank.

In the West Bank, the overall index dropped from -15.4 points in May to -22.4 points in June, reflecting a decline across most sectoral sub-indices: Industry: from -5.0 to -6.9 points; Construction: from -2.8 to -4.1 points; Agriculture: from -0.2 to -1.2 points; Trade: from -6.0 to -7.2 points; Transport and Storage: from -0.6 to -2.0 points. In contrast, the Renewable Energy Index remained stable at -0.1 points, while the Index of Information and Communications Technology held steady at -0.9 points, showing no notable change.

Respondents from targeted enterprises in the West Bank reported declining levels of production and sales, alongside rising inventory levels. Their outlook for the coming three months remained pessimistic, particularly with regard to production and employment expectations.

In the Gaza Strip, the continued Israeli aggression—coupled with the systematic destruction of infrastructure and the near-total paralysis of economic life—has created unprecedented economic hardship. Under these conditions, the overall index in Gaza is expected to remain at historically low levels, approaching -100 points, reflecting a near-total collapse in economic activity across the Strip.