Israel: Composite State of the Economy Index growth gains steam in June
The Bank of Israel’s Composite State of the Economy Index increased 0.12% in month-on-month seasonally adjusted terms in June, which was above May’s 0.06% increase. The Index was positively influenced by increases in goods exports, credit card purchases, industrial production, retail trade, services exports, and building starts. Conversely, declines in the import of consumption goods, the import of production inputs, and the services revenue index negatively influenced the index.
On an annual basis, economic activity fell at a quicker rate of 1.4% in June (May: -1.3% yoy), the worst result since December 2023.
Despite June’s expansion, the economy remained over 1% smaller than before the war with Hamas broke out in October 2023. Moreover, June’s growth rate was muted by historical standards.