In May 2025, Israel's M1 money supply indicator reported a slight improvement, shifting from a contraction rate of -3.4% in the previous month to -3.3%, according to the data updated on 15 July 2025. This adjustment marks a minor yet noteworthy change in the country's M1 money supply—the aggregate indicative of the flow of currency and demand deposits available for economic activities.
The M1 money supply serves as a critical economic gauge, reflecting the immediate liquidity available in the economy. This small easing of contraction could signal a move towards financial stability and may provide some reassurance to both investors and policymakers concerned about the liquidity stresses in the Israeli economy.
The year-over-year comparison underscores this value, suggesting that while the economy is still experiencing a contraction in money supply, the deceleration may be indicative of underlying adjustments taking place. The shift implies a potential stabilizing trend that merits careful observation as Israel navigates this economic phase. Economists and industry analysts will be closely monitoring subsequent data releases for indicators of sustained improvement or further volatility.
