The Bank of Israel published its Composite State of the Economy Index showing a 0.64% decline in July and confirmed this is the final publication of the index in its current format. Starting next month, it will publish a new Monthly Index of Economic Activity intended to give a more precise and up-to-date picture of monthly growth. The July decline still reflects Operation Rising Lion’s impacts on index components from June, while components reported so far for July increased, indicating an improvement in activity following the military operation. The release also included retroactive revisions to prior months, including a larger June decline (-1.62% from -0.67%) and a May decline of -0.33% (from -0.17%); The new Monthly Index of Economic Activity will be based on data processing of more than 30 economic series using a dedicated statistical model developed at the Bank of Israel that is designed to signal changes in the growth environment earlier than the Composite Index. The Bank will continue calculating the current Composite Index for the next year for concatenation and control and make it available in its series database.
Bank of Israel 2025-08-25
Bank of Israel reports 0.64% July fall in the Composite State of the Economy Index and will replace it with a Monthly Index of Economic Activity
The Bank of Israel reported a 0.64% decline in its Composite State of the Economy Index for July, marking the final release in its current format, with a new Monthly Index of Economic Activity to be introduced next month for more precise growth insights. The July decline reflects impacts from Operation Rising Lion, though subsequent improvements were noted, and revisions showed a larger June decline of -1.62% and a May decline of -0.33%.