PMA Business Cycle Index (PMABCI) – January 2026 Decline in the Overall Index

The results of the PMA’s Business Cycle Index (PMABCI) indicated a decline in overall business activity in Palestine during January 2026, as the composite index decrease to -27.4 points, compared to -25.2 points in December 2025, in this context the index remained at lowest levels, reflecting the ongoing uncertainty caused by the unprecedented Israeli aggression against both the Gaza Strip and the West Bank.

The overall index in the West Bank indicated a significant decrease from -9.4 points in December 2025 to -20.3 points in January 2026. Most of this decline was driven by decreases in the performance of different economic sectors, as follows:

• The Industrial index decreased from -1.2 to -4.5 points.
• The Construction index decreased from -2.6 to -5.7 points.
• The Trade index decreased from -4.7 to -8.6 points.
• The Agriculture index decreased from -0.2 to -0.5 points.
• The Transportation and storage index decreased from -0.2 to -0.5 points.

While, the IT and communications index was stable at around -0.3 points, and renewable energy index at around -0.2 points.

The survey results in the West Bank reported a decrease in production and sales levels, in addition to decrease in inventory levels. Furthermore, the respondents' expectations regarding production and employment levels for the next three months were negative.

As for the Gaza Strip, it continues to suffer from a near-total economic paralysis due to the ongoing Israeli assault, which has inflicted extensive destruction on infrastructure and all aspects of daily life. Although, the ceasefire which was implemented in October 2025, allows for the inflows of a limited amount of consumption goods and services into Gaza, therefore the index was estimated to continue at its lowest levels, at around -70.0 to – 80.0 points.