The latest data from Israel shows a continued decline in the M1 money supply, albeit at a slower pace than previously recorded. On May 16, 2024, the indicator was updated to reflect a -8.8% change year-over-year for the month compared to the same period last year. This represents an improvement from the previous data point, which indicated a -11.3% decline.
The M1 money supply, which encompasses physical currency and coin, demand deposits, and other liquid assets, saw a reduction but with signs of stabilization compared to the previous month's sharper contraction. This trend suggests that while Israel's monetary environment remains tight, there may be emerging factors contributing to the easing of this decline.
Economists and financial analysts will be closely monitoring these developments, as changes in M1 money supply are critical indicators of economic liquidity and consumer spending potential. The slower rate of decline may signal a turning point, offering hope for economic resilience and future growth.
