Israel: Economic activity picks up in June after May's lull
July 23, 2019
The Bank of Israel’s Composite State of the Economy Index rose 0.23% in June, up from May’s revised 0.14% increase (previously reported: +0.13% month-on-month). The average reading for Q2 as a whole suggests momentum ebbed from the first quarter, when growth was boosted by temporary factors; this also matches our panelists’ predictions. On a year-on-year basis, growth in the index clocked 3.3%, matching May’s figure.
June’s reading was supported by stronger imports of consumer goods and manufactured inputs, and a rise in goods exports. However, the latter appears to contradict the most recent merchandise trade data, which showed exports declining in June. Lower industrial production and retail sales figures for May dragged on the headline figure. 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.
Author: Oliver Reynolds, Economist