The PMA Business Cycle Index (PMABCI) – November 2023

Massive drop in the West Bank and collapse in the Gaza Strip

The results of the PMA Business Cycle Index (PMABCI) revealed a significant and continuous deterioration, for the second consecutive month, in the overall index during November, recording -52.7 points compared to –38.6 points in October, due to the continuous devastating Israeli attack on the Gaza strip.

The overall index in the West Bank decreased from -26.7 points in October to -43.6 points in November, due to the impact of this attack on most of the economic activities, causing a sharp decline in all sub-indices, except agriculture. Hence, the manufacturing index declined (from -6.6   to -12.0), the construction index (from -3.6 to -10.0), the trade index (from -8.3 to -11.2), the renewable energy index (from -0.7 to -1.4), the transport and storage index (from -1.9 to -3.1), and the IT and communications index (from -0.2 to -1.3). On the other hand, the agriculture index was an exception and increased (from -5.3 to -4.5).

Firms’ owners in the West Bank indicated a decline in production and sales levels. While it indicates an increase in inventory level. However, their expectations were negative about production and employment levels for the next three months.

In the Gaza Strip, the destructive Israeli military attack resulted in a devastating and catastrophic tragedy and has paralyzed all aspects of life. Therefore, the overall index for the Gaza Strip is estimated to reach around -100 in October and November, compared to -13.6 in September.