Israel's Business Risk Index Shows Sectors Remaining Unstable
Translated & summarized from Maariv by baba
Israel's business risk index saw a slight overall decrease in Q3 2026, but significant sector-specific variations emerged. Agriculture, travel, and beauty services improved, while legal, accounting, office supplies, and metal industries faced increased risks. Global supply chain and cost fluctuations continue to impact Israeli businesses, necessitating detailed risk assessment.
The story in 5 lines · by baba
- Israel's business risk index decreased slightly overall in Q3 2026.
- Agriculture, travel, and beauty sectors showed improved risk levels.
- Legal and accounting professions experienced a rise in business risk.
- Office supplies, toys, books, metal, and aluminum industries also saw increased risk.
- Global supply chain and cost changes continue to affect Israeli businesses.
Israel's overall business risk slightly decreased in the third quarter of 2026, according to the CofaceBDI Business Risk Index, which assesses the risk of working with clients and suppliers in the country. However, significant disparities exist between different sectors.
The agriculture sector saw the most notable improvement, with its risk index dropping by 1.8%. This is attributed to a potential recovery in activity and easing operational and labor challenges, following ongoing impacts from the security situation.
Travel agents and aviation services also experienced a 1.7% decrease in risk, linked to increased activity, likely due to a rise in Israelis traveling abroad during the quarter. The beauty and grooming sector saw a 1.6% reduction in risk, possibly reflecting seasonal demand during summer and event seasons.
Conversely, the legal and accounting professions faced a 1.7% increase in risk. CofaceBDI suggests this may indicate a slowdown in demand for certain business services and growing pressure on collecting payments from clients. The company also noted the growing influence of artificial intelligence on business structures and competition, though it was not cited as a direct cause for the current quarter's risk increase.
Other sectors experiencing a risk increase of 1.6% include office supplies, toys, and books, due to weak demand for some products, high competition, and pressure on sales and profitability. The metal and aluminum industry also saw a similar rise, potentially due to weakened demand from the construction and industrial sectors, coupled with rising raw material and financing costs.
CofaceBDI emphasized the ongoing impact of global supply chain, transportation, and raw material price changes on Israeli businesses. They advise businesses to analyze customer and supplier risk at both the industry and individual company level, rather than relying solely on general trends, to make informed decisions.
