The PMA Business Cycle Index (PMABCI) – October 2023

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

The results of the PMA Business Cycle Index (PMABCI) revealed a deterioration in the overall index in Palestine during October, recording –38.6 points compared to 1.8 points in September, due to the devastating Israeli attack on the Gaza strip.

The overall index in West Bank declined from 4.8 points in September to -26.7 points in October, due to a sharp decrease in all sub-indices. Hence, the manufacturing index declined (from 4.2 to -6.6), the agriculture index (from -2.2 to -5.3), the construction index (from 0.2 to -3.6), the trade index (from 0.9 to -8.3), the renewable energy index (from 0.2 to -0.7), the transport and storage index (from 0.9 to -1.9), and the IT and communications index from (0.5 to -0.2).

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

In the Gaza Strip, the unprecedented Israeli military attack resulted in a devastating and catastrophic tragedy and has paralyzed life in all its aspects in the Gaza Strip. According to estimates, the overall index for the Gaza Strip is expected to deteriorate to about -100 in October, compared to -13.6 in September.