Israel: Composite State of the Economy Index rises at quickest pace in six months in January
The Bank of Israel’s Composite State of the Economy Index grew 0.29% in month-on-month seasonally adjusted terms in January, up from December’s 0.27% increase. The data shows that the economy continues to recover from the war against Hamas, which hit activity significantly in October–November. However, economic activity is still below its pre-war level.
In January the Index was positively influenced by increases in services revenue, retail trade revenue, imports of production inputs, goods exports, the job vacancy rate, and credit card purchases.
On an annual basis, economic activity decreased 1.3% in January, easing somewhat from December’s 1.5% fall.
GDP will return to growth from Q1 2024 onwards, though the lingering conflict will continue to cast a shadow over the economy.