Israel: State of the Economy Index moderates in May due to a sharp drop in goods exports
June 24, 2018
The Israeli economy grew at a moderate pace in May, with the Bank of Israel’s Composite State of the Economy Index increasing 0.25% over the prior month, down from April’s revised 0.35% month-on-month expansion (previously reported: +0.39% month-on-month). April’s reading had marked the highest level in eight months.
Growth in the Index in May was again supported by greater imports of manufacturing inputs as well as consumer goods. However, a strong drop in goods exports in May held back economic activity. Trailing data for April showed that industrial production growth picked up pace in the month, while indices of retail trade and services revenue contracted.
Lastly, on an annual basis, growth in the Index was stable at the prior month’s 3.7%.
Author: Jan Lammersen, Economist