Index of economic activity in May remains below pre-war levels

ISRAEL - In Brief 18 Jun 2026 by Sani Ziv
The Bank of Israel’s Monthly Index of Economic Activity declined by 0.4% in May. The index reflects the average monthly growth rate over the March-May period and captures the impact of the war on economic activity. The index readings for the previous two months were revised downward following the release of previously unavailable data and an additional downward revision to first-quarter 2026 GDP growth. The decline in the index was driven by lower trade and services revenue data and weaker industrial production data in March, as well as lower imports of consumer goods and indirect tax revenues in May. In contrast, credit card purchases, financial indicators including the Tel Aviv Stock Exchange General Share Index and the Nasdaq Index in April and May, and goods exports in May helped moderate the decline. On a monthly basis, the index increased by 1.1%. However, economic activity in May remained about 1.5% below its February level, prior to the outbreak of the war. The relatively modest recovery in economic activity supports further interest rate cuts.The Monthly Index of Economic ActivitySource: Bank of Israel

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