The Bank of Israel published its monthly Index of Economic Activity showing a 0.2 percent decline in March. The index reflects the average monthly growth estimate for January to March 2026 and includes the economic implications of Operation Roaring Lion, which began on February 28. The central bank assessed that the March reading likely understates the decline because data for some indicators were still unavailable. The fall was driven by weaker credit card purchases in March, retail trade and industrial production of construction inputs in February, goods exports in mixed-high technology industries in February and March, manufacturing goods exports in February, goods imports in March, and labor market data on job vacancies in February and March and the number of actually employed persons in February. Performance of the Tel Aviv Stock Exchange General Shares Index in recent months moderated the decline. The pace of increase in the index remained below the long-term growth trend of about 0.3 percent, and recent months were revised downward following the completion of previously missing data and a downward revision to fourth quarter 2025 growth data.
Bank of Israel 2026-04-29
Bank of Israel reports 0.2 percent fall in March economic activity index and says decline may be understated
The Bank of Israel reported a 0.2 percent decline in its monthly Index of Economic Activity for March 2026, likely understating the slowdown due to incomplete data and Operation Roaring Lion. The fall was driven by weaker credit card purchases, retail trade, construction-related industrial production, goods exports and imports, and softer labor market indicators, partly offset by recent Tel Aviv Stock Exchange General Shares Index performance. The index’s growth pace remains below its long-term trend of about 0.3 percent, with recent months and fourth quarter 2025 data revised downward.