Israeli Consumer Spending Drops on October 7 Anniversary Amid National Mood
Credit card data from the Phoenix Gamma index shows a drop in Israeli consumer spending during the October 7 anniversary, led by sharp declines in fashion and dining.
The week following the Tishrei holidays was expected to signal a return to routine consumer habits, but the third anniversary of the October 7 Hamas terror attack visibly impacted Israelis, who demonstrated solidarity and reduced spending that day. Overall, the entire week ended in a downward trend across most sectors, according to data from the Phoenix Gamma index, which tracks credit card purchases in Israel.
Sector Impacts on the October 7 Anniversary
The sectors recording the sharpest declines on the anniversary were fashion, as well as restaurants and cafes. The fashion sector saw a 27% drop in shopping turnover compared to the previous Wednesday, with the number of transactions falling by 23%. The decline in online shopping was particularly pronounced at 53%, compared to a 21% drop in physical stores.
Meanwhile, the cafe and restaurant sector registered a 26% decrease in purchasing volume on that day, alongside a 9% drop in transaction counts. Unlike national memorial days where the economy operates on a half-day schedule, businesses functioned normally, yet the public chose to spend less time on leisure.
Weekly Trends and Electronics Resilience
Looking at the full week, the fashion sector registered the largest turnover decrease, dropping 14% compared to the previous week. The average transaction size remained virtually unchanged at approximately ₪216, indicating that the drop was driven by volume rather than basket size as the country transitioned from the holiday period into a standard workweek.
"The data from October 7 shows just how closely consumption in Israel is tied to the national mood. The public did not stop purchasing basic goods, but forgone leisure, fashion, and non-urgent online shopping," said Nadav Lachmani, CEO of Control by Phoenix Gamma.
Conversely, the home appliance sector recorded its second consecutive week of growth, jumping 14% compared to the previous week. Analysts now expect the sector to post a significant surge during November sales events.
