Israel Key Index Fell 0.3% in June, Central Bank Says

By Alisa Odenheimer

July 20 (Bloomberg) -- Israel's index of leading economic indicators fell 0.3 percent in June, the first decline in more than three years, because of weaker industrial production, retail sales and exports of services, the Bank of Israel said.

The index fell a revised 0.1 percent in May and gained a revised 0.4 percent in April, the Jerusalem-based central bank said in an e-mail today. The bank previously reported that the indicator remained unchanged in May and rose 0.2 percent in April.


``The decline in the past two months in the index testifies to the slowing in the pace of expansion of the economy,'' the Bank of Israel said.

Israel's economy, which expanded 5.3 percent last year, will grow 4.2 percent in 2008, the central bank said on June 18, citing the impact of the global slowdown. Growth has exceeded 5 percent annually in the previous four years.

``We are definitely seeing the beginning of a slowing in growth,'' Ori Greenfeld, chief economist at Clal Finance Ltd. said by telephone.

To contact the reporter on this story: Alisa Odenheimer in Jerusalem at aodenheimer@bloomberg.net.