The PMA Business Cycle Index (PMABCI) – May 2024

Improvement in the West Bank and collapse in the Gaza Strip

The results of the PMA Business Cycle Index (PMABCI) revealed an increase in the overall index during May 2024 to -0.4 points, compared to -7.0 points in April 2024. Despite this improvement, the index remained at its lowest level since the devastating Israeli aggression.

The overall index in the West Bank increased from -2.5 points in April 2024, to 4.3 points in May 2024. Where the agriculture index increased (from 0.0 to 4.3), the manufacturing index (from –1.0 to 0.7), and the construction index (from -0.6 to 0.9). Conversely, the trade index declined (from -1.6 to -2.3). While the renewable energy and IT and communications index stabilized at around 0.3 points, also the transportation and storage index stabilized at around 0.2 points.

Firms’ owners in the West Bank indicated an increase in production and sales levels, while an inventory level decreased. Furthermore, the owner’s expectations about production and employment levels for the next three months were positive.

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