Israel: Composite State of the Economy Index stabilizes in June
August 3, 2020
The Bank of Israel’s Composite State of the Economy Index inched up 0.03% month-on-month in seasonally-adjusted terms in June (May: -0.62% mom). June's result marked the best reading since January, and was driven by stronger imports in June, and a rebound in retail and services activity in May, amid the easing of lockdown restrictions. 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 fell at a sharper rate of 1.3% in June (May: -1.0% yoy).
Looking ahead, economic activity could have contracted month-on-month in July due to fresh restrictions to tame rising Covid-19 infections. Looking further ahead, the economy should gradually recover, although this is likely contingent on the virus being brought under control.
Author: Oliver Reynolds, Economist