Israeli Spending Rose in October Despite War Anniversary, Boosted by Election Day

Israeli credit card spending in October reached NIS 51.6 billion, a 12.5% increase compared to October of the previous year. While a significant sum, this figure fell short of the summer's peak months, with July seeing Israelis spend NIS 54.9 billion. The October total reflects a mix of influences, including the Sukkot holiday at the beginning of the month, the anniversary of the October 7th massacre, and the national election day holiday at the month's end. Data from Shva, which manages national payment systems, indicates that the Sukkot holiday period saw reduced economic activity as many Israelis vacationed domestically or abroad, leading to lower consumption. The anniversary of the October 7th attacks, observed on October 5th, also contributed to a slowdown in purchases. On October 7th, public spending in 11 key retail sectors examined was approximately NIS 768 million, a 9.1% decrease from NIS 845 million spent on October 14th. This dip was particularly noticeable in restaurants, cafes, and clothing and footwear stores. In contrast, election day on October 27th saw a surge in spending, with the same 11 sectors exceeding NIS 1 billion. Restaurants and cafes reported NIS 181 million in spending, compared to NIS 127 million on a typical day, and fashion stores recorded NIS 175 million, up from NIS 103 million. However, the comparison for election day is affected by it falling on a Tuesday. Monthly, the average daily spending decreased by 6.2% from September to NIS 1.66 billion. The year-over-year comparison is also nuanced, as the timing of holidays like Yom Kippur and Sukkot shifted between September and October compared to the previous year, partially explaining the annual increase. Sector-wise, restaurants and cafes saw an 18.1% rise in spending to NIS 4.05 billion, and gas station expenditures grew by 13.8% to NIS 1.93 billion, partly due to a price increase for gasoline.