New data from the Central Bureau of Statistics (CBS) shows a moderate 1.1% increase in total credit card purchases, with significant growth in spending on food and beverages (0.9%) and other essential goods. Conversely, there was a sharp 4.8% decline in service purchases and a 0.7% drop in industrial products.
Amid global economic changes and local impacts on the economy, the CBS data for August-October 2024 reveals that Israelis maintain a degree of economic stability, with an annualized 1.1% rise in credit card purchases. This increase is mainly driven by food and beverage consumption, but the sharp declines in services and industrial products highlight economic and social challenges that require attention.
The CBS data indicates that total credit card purchases grew at an annualized rate of 1.1% during August-October 2024, reflecting continued steady consumption of essential goods. Notably, purchases of food and beverages (including dining services) rose by 0.9% compared to the previous period, while the “other products and services” category—which includes fuel, electricity, computers, and medical equipment—showed a 1.8% increase.
However, the services sector experienced a steep decline of 4.8%, mainly due to reduced spending on flights, tourism, and leisure activities. Similarly, industrial products, including furniture, electronics, and clothing, saw a 0.7% decrease, with notable drops in categories like clothing and footwear (-4.6%) and electronic equipment (-2.9%).
Changes in consumption habits reflect a shift toward more basic spending, particularly against the backdrop of economic uncertainty and a preference for saving. Despite this, growth in essential goods and the technology sector points to relative stability and adaptation to current economic challenges.
The data portrays the state of Israel’s economy: consumers continue to prioritize essential goods while adjusting their spending priorities to match the economic situation.
