Israel's Economic Activity Index Rose 0.4% in August

Israel's monthly economic activity index increased by 0.4% in August, slightly exceeding the long-term growth trend of approximately 0.3%. The rise was attributed to positive contributions from commodity imports, taxes, and gross domestic product (GDP) data, according to a statement released by the Bank of Israel on Thursday.

The index reflects the average monthly growth of economic activity over the three-month period from June to August, not just the performance of the past month alone. Imports of consumer goods and production inputs, along with value-added tax and indirect tax revenues, boosted the index. Actual GDP data for the second quarter also supported the increase.

However, the index's rise was tempered by credit card purchases, commodity exports, particularly industrial ones, and a decline in retail trade and employment figures. The performance of the Nasdaq 100 index in July also contributed to curbing the overall rise.

Details of the index showed that actual output, taxes, and imports provided the largest positive contributions in August. Conversely, exports, the labor market, and credit card purchases had negative impacts on the overall assessment. The Bank of Israel revised its July activity estimate downward and slightly raised its June estimate following the release of additional data for previous months.

The Bank of Israel noted that the index is based on a model estimating average monthly GDP growth over three months, utilizing data from consumption, trade, the labor market, taxes, and financial markets.