Monthly consumer confidence index in Israel 2023-2025

Israel's consumer confidence index reached 45 points in January 2025, showing a slight improvement from December 2024. Still, public sentiment remained below the previous 12-month average of 48 points. This figure reflected the ongoing impact of the Israel-Hamas conflict on consumer sentiment, which has been relatively low since the war began in October 2023. The index provides insight into Israeli households' perceptions of their financial situations and major purchasing plans.

Public consumption recovers

Despite the subdued consumer confidence, the consumer market in Israel tells a different story. Private consumption reached over 250 billion Israeli shekels (about 68 billion U.S. dollars) in the third quarter of 2024, representing an increase of almost 10 percent from the previous quarter. This was part of a longer upward trend in spending for three consecutive quarters. The gradual improvement in consumer spending suggests a steady recovery in the consumption side of the economy.

Credit card transactions are growing

Credit card transactions also demonstrated signs of recovery. In the first quarter of 2024, the total value of credit card transactions in Israel amounted to over 124 billion Israeli shekels (about 34 billion U.S. dollars), marking a 12.5 percent increase from the previous quarter. This growth was observed across both large and small businesses, with transactions in large businesses reaching over 82 billion Israeli shekels (about 22 billion U.S. dollars) during the first months of 2024.