Breaking Update

Index of Economic Activity Down 0.2% in April

Israel's economy contracted by 0.2% in April, with the Bank of Israel citing impacts from credit card spending and labor market data.

Economy

Jerusalem, 20 May, 2026 (TPS-IL) — The Bank of Israel reported that the monthly Index of Economic Activity declined by 0.2% in April. The Index this month reflects the average monthly growth estimate for the three months from February to April.

The Index was adversely impacted, explained the Bank, by data on credit card expenditures and labor market data regarding the number of employees and job vacancies in February and March, service industries revenue in February, and retail trade data in February and March.

In addition, data on actual GDP in the first quarter of 2026 contributed negatively to the Index. In contrast, data on goods exports and the imports of consumer goods and manufacturing inputs in April, and financial data on the Tel Aviv Stock Exchange General Shares Index in recent months, and the Nasdaq index in April, moderated the Index’s decline.

The pace of increase of the index is under the long-term growth trend (about 0.3%).

The Index for the past three months was revised downward with the completion of data that were previously missing and with the additional downward revision in growth data for the fourth quarter of 2025.

The monthly Index of Economic Activity reflects the three-month average of the estimated monthly growth of GDP. The estimate is based on a model developed at the Bank of Israel.

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