Israel: Composite State of the Economy Index growth remains broadly stable in June
The Bank of Israel’s Composite State of the Economy Index increased 0.14% in month-on-month seasonally-adjusted terms in June, which followed May’s 0.11% increase. June’s reading indicates only modest growth in the economy, and was held back by lower retail sales, industrial production and services revenue for May, amid the flare-up of conflict with Hamas. This partially offset the positive impact of stronger imports in June. 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.
On an annual basis, economic activity rose 2.2% in June, which was below May’s 2.8% expansion.
Moving to the third quarter, the economy should expand at a robust pace, although the recent reimposition of some Covid-19 restrictions, including tougher border controls and a “green pass” in order to enter certain public venues, could take the edge of momentum.