Israel’s industrial sector staged a strong recovery at the start of 2026, with industrial output rising 2.7% month-over-month in January, according to data updated on 26 March 2026. The rebound follows a sharp 4.3% contraction recorded in December 2025, also measured on a month-over-month basis.
The latest figures mark a clear turnaround in momentum: after December’s steep decline versus November, January’s positive reading indicates a partial restoration of industrial activity. While the 2.7% increase does not fully offset the previous month’s drop, it suggests that output is stabilizing and may be moving back toward a growth trajectory as 2026 gets under way.