Israeli Consumer Spending Hits Record High of NIS 109 Billion in Summer

Consumer spending in Israel reached unprecedented levels during the summer months of July and August, with total credit card payments soaring to approximately 109 billion shekels. This figure represents a nearly 8% increase compared to the same period last year, according to data released by Shva, the company managing the country's payment systems. Over the past four years, summer spending has surged by about 40%.

Maged Karam, an auditor, noted that while the figures clearly show a significant outflow of money from consumers' pockets, it remains unclear whether the rise in spending is due to increased consumption or inflation. July alone saw a record 55 billion shekels in credit card payments, with August following closely at 54 billion shekels, both experiencing roughly 10% year-over-year growth.

The food sector led spending increases, with payments reaching 6 billion shekels, a 6% rise. Restaurants saw a more substantial jump of 11%, totaling 4.2 billion shekels. Spending on electronics and fashion also rose by approximately 8% each, reaching about 3 billion shekels per sector.

Fuel spending also hit a historic high in August, with an average daily expenditure of 70 million shekels, amounting to 2.1 billion shekels for the month. This 14% increase was largely attributed to rising gasoline prices, which exceeded 8 shekels per liter in August compared to just over 7 shekels in August 2025, rather than a significant increase in consumption.

Despite the surge in credit card usage, cash withdrawals from ATMs remained stable at around 6 billion shekels in August, similar to the previous year. Karam stated this indicates that the rise in credit card spending reflects both actual growth in expenditures and price increases, not just a shift from cash to electronic payments. Direct in-store purchases also set a record, averaging 760 million shekels daily, or 23.5 billion shekels monthly. Online shopping, while experiencing a slight monthly dip from July, still showed an 11% annual increase, reaching about 30 billion shekels.

In contrast, spending on Israeli airlines saw a minor decrease of 0.8%, totaling 427 million shekels. This was attributed to the return of foreign airlines, which captured a portion of traveler spending, with payments to foreign carriers not fully reflected in the reported data.