Israel: Composite State of the Economy Index falls at sharpest pace since October 2001 in April
June 3, 2020
The Bank of Israel’s Composite State of the Economy Index dropped 0.33% month-on-month in seasonally-adjusted terms in April. The result marked the worst reading since October 2001, and reflected lower consumer goods imports in April, and lower services revenue and industrial output in March. The index is calculated using the latest available data and hence uses a combination of figures from recent months to provide a comprehensive picture of the economy’s performance. March’s reading was also revised down notably to -0.17% (previously reported: -0.06%) as more data became available reflecting the impact of the lockdown imposed in the second half of the month.
On an annual basis, economic activity rose 1.9% in April, which was below March’s 2.4% expansion.
Economic activity should gradually recover going forward given that lockdown restrictions were eased from mid-April, although there will still be a marked contraction over 2020 as a whole.
Author: Oliver Reynolds, Economist