Security Concerns on the Decline in Israel’s Business Sector: Retail Industry Shows Swiftest Progress, Hi-Tech Production sector Faces Increasing Challenges

According to the Central Bureau of Statistics’ Business Tendency Survey for June 2024, there was a noticeable decrease in the number of businesses that consider Israel’s security situation as a significant obstacle. This drop was particularly evident in the retail sector, with a slower decline in the industry sector. By the end of Q2/2024, 17% of businesses in the industry sector and 11% in the retail sector reported security concerns as a significant hurdle.

On the other hand, the survey found an increase in the proportion of businesses facing challenges in penetrating new markets in the hi-tech production sector. In Q2 2024, 22% of businesses in this sector reported this as a significant impediment, compared to just 9% at the beginning of the year.

Despite these challenges, businesses reported positive net balances in sales across all sectors in June. The survey showed increased sales in both the industry and service sectors, while retail sales saw a decrease. Expectations for July were positive for all sectors except construction and hotels. This indicates a generally optimistic outlook for businesses in Israel.