The PMA Business Cycle Index (PMABCI) – June 2024

Drop in the West Bank and collapse in the Gaza Strip

The PMA Business Cycle Index (PMABCI) results revealed a significant decrease in the overall index during June 2024 to -16.5 points, compared to -0.4 points in May 2024, due to uncertainty in light of the continuous unprecedented Israeli aggression.

The overall index in the West Bank decreased from 4.3 points in May 2024, to -12.5 points in June 2024. Where the manufacturing index witnessed a noticeable decline (from 0.7 to -4.4), the agriculture index (from 4.3 to 0.3), the construction index (from 0.9 to -1.7), the trade index declined (from -2.3 to -6.0), the renewable energy index (from (0.3 to -0.4), and IT and communications index decreased (from 0.3 to -0.3). At the same time, the transportation and storage index stabilized at around -0.1 points.

Respondent firms in the West Bank indicated a decrease in production, sales, and inventory levels. Furthermore, the respondents’ expectations about production and employment levels for the next three months were negative.

In the Gaza Strip, the unprecedented Israeli aggression since October 2023, resulted in devastating and catastrophic tragedies, which affected all aspects of life in the Gaza Strip, and led to an extremely difficult economic conditions. Therefore, the overall index in the Gaza Strip has been estimated to be at its worst value of -100 from October 2023, until June 2024.