Key facts
- Israel's industrial production fell 1.1% on a seasonally adjusted annualized basis in Q1.
- The decline is attributed to the conflict with Iran and Hezbollah impacting low-tech manufacturing and extraction.
- Labor market indicators have deteriorated.
- Sales figures remained in expansion.
- Business confidence improved in April-May.
Israel's industrial production saw a 1.1% seasonally adjusted annualized decline in the first quarter. This downturn is primarily linked to the ongoing conflict with Iran and Hezbollah, which has negatively affected low-tech manufacturing and extraction sectors. Labor market indicators have also deteriorated. Despite these challenges, sales figures have remained in expansion, and business confidence showed improvements during April and May.