Israelis Set New Spending Record with Nearly 55 Billion Shekels in July

In July 2024, Israelis spent a record-breaking 54.9 billion shekels, according to data from Shva, the operator of Israel's payment infrastructure. While summer months typically see high consumer activity, this new peak surpasses the previous record of 52.4 billion shekels set in May 2024. The 5.8% increase compared to July 2023 reflects ongoing economic growth despite last year’s rebound in spending after Operation Guardian of the Walls.

Significant rises were noted in dining and fast food expenses, which grew by 11.6% to around 4 billion shekels. Grocery store spending, the largest household expense category, increased by 6.6% to 6.6 billion shekels. Fuel costs also contributed to higher spending, with prices rising to 7.48 shekels per liter in July 2024 from 7.13 shekels the previous year, pushing fuel expenditures up 6.9% to about 2 billion shekels.

Conversely, spending on flights with Israeli airlines dropped 12.3% to 485 million shekels, largely due to the return of foreign airlines operating in Israel. The record spending was evident both in physical stores and online, with daily online expenditures exceeding one billion shekels in June and July. Online purchases accounted for approximately 58% of total credit card spending, consistent with the past year’s average.

Cash withdrawals from ATMs reached about 6 billion shekels, the highest since August 2023 before the outbreak of Operation Iron Swords, indicating that cash usage remains prevalent. This suggests that the growth in credit spending is driven more by overall economic expansion and inflation rather than a shift from cash to credit.