The PMA Business Cycle Index (PMABCI) – January 2024

Drop in the West Bank and collapse in the Gaza Strip

The results of the PMA Business Cycle Index (PMABCI) revealed a significant drop in the overall index during January 2024 to about -38.2 points, compared to –36.4 points in December 2023, due to the continuous devastating Israeli aggression, mainly on the Gaza Strip.

The overall index in the West Bank decreased from -24.0 points in December 2023, to          -26.2 points in January 2024. Most of the sub-indices declined during this month, where the agriculture index declined (from -1.3   to -1.8), the construction index (from -7.0 to -7.7), and the trade index (from -7.5 to -9.8). On the other hand, manufacturing index increased (from -4.6 to -3.4). However, the renewable energy index stabilized at around -1.3 points, the transport and storage index at around -1.9 points, and the IT and communications index stabilized at around -0.3 points.

Firms’ owners in the West Bank indicated decreased in production, sales, and inventory levels. Furthermore, their expectations about production levels for the next three months were negative.

In the Gaza Strip, the Israeli military aggressive attack since October 2023, resulted in devastating and catastrophic tragedies, which affected all aspects of life in the Gaza Strip, and resulted in terrible economic conditions. Therefore, the overall index in the Gaza Strip has been estimated to be -100 during the period of this attack, from October 2023, until now January 2024.