Israelis Spent Record Sums on Credit Cards This Summer

Israelis spent approximately 109 billion shekels using credit cards during July and August, marking the highest summer spending on record, according to data from Shva, the operator of Israel's national payment systems. This figure represents a 7.9% increase compared to the same period last year and a rise of over 40% in the last four years.

Fuel stations saw record spending in August, averaging 68.8 million shekels daily, totaling about 2.13 billion shekels, an increase of 13.8% from the previous year. This surge is largely attributed to rising fuel prices, with a liter of gasoline costing 8.09 shekels in August, up from 7.07 shekels in August 2022. July recorded the highest monthly credit card spending at 55 billion shekels, followed by August with 54 billion shekels, a 10% increase year-over-year.

Grocery store chains led spending in August, accounting for 6.3 billion shekels, a 6% rise. Restaurants followed with an 11.2% increase, reaching approximately 4.2 billion shekels. Spending in the electricity and fashion sectors also grew by 8.2%, with each reaching about 3 billion shekels.

Conversely, spending with Israeli airlines decreased by 0.8% to around 427 million shekels. Shva data suggests this is due to a shift in demand towards foreign airlines not covered by their statistics. Spending in physical stores and malls increased by 8.1% daily, totaling 23.5 billion shekels in August. Online purchases reached 30.6 billion shekels, an 11.5% annual increase, despite a 4.2% daily spending dip from July to August.

Cash withdrawals from ATMs remained stable, with about 5.9 billion shekels withdrawn in August, similar to the previous year. The data indicates that the rise in credit card spending primarily reflects overall price increases and nominal spending growth, rather than a significant shift from cash to card usage.