Israel: Decline in economic activity softens in July
The Bank of Israel’s Composite State of the Economy Index declined 0.03% in month-on-month seasonally adjusted terms in July, which followed June’s -0.29% decrease, as the war in Gaza continued to weigh on economic activity. Looking at subsectors, the Index was positively influenced by increases in the import of consumption goods, production inputs, goods exports, and the job vacancy rate. In contrast, declines in credit card purchases, industrial production, retail trade revenue, services revenue, and employee posts negatively influenced the Index.
On an annual basis, economic activity fell at a sharper rate of 2.0% in July (June: -1.7% yoy), the worst result since November 2023.