* Fears of random Palestinian attacks keeping shoppers home
* Tourism still struggling to rebound from 2014 Gaza conflict
* Israel Q2 GDP rose just 0.1 percent
By Steven Scheer and Tova Cohen
TEL AVIV, Oct 19 (Reuters) - A surge in Palestinian attacks in Israel is raising concerns that the weakening economy could eventually be pushed into recession.
There are already signs that some Israelis may be pulling back from spending - one of the pillars of Israeli growth at the moment - and tourism, still reeling from the 2014 Gaza conflict and accounting for 7 percent of Israel's economy, is vulnerable.
Construction could also be hit if the flow of 100,000 Palestinian labourers who enter Israel and settlements in the West Bank each day to work, illegally or with permits, is stemmed by security blockades.
But much will depend, analysts said, on whether the violence that erupted more than two weeks ago in the occupied West Bank and Jerusalem is prolonged and spreads further into cities in Israel's commercial heartland.
"The attacks will only have an effect on the economy if they last a long time and happen in cities (outside Jerusalem) such as Tel Aviv, Haifa and Beersheba," Ilan Artzi, chief investment officer of brokerage Halman-Aldubi said.
"If they spread to other cities then we will see people go out less and buy less," he said.
Hours after Artzi spoke, the main bus station in Israel's biggest southern city, Beersheba, was the scene of a shooting attack on Sunday by an Arab gunman, who killed a soldier and wounded 10 other people before being shot dead.
An Eritrean migrant, mistaken as an assailant, was shot by a security guard and kicked by an angry crowd. He died of his wounds on Monday.
That incident underscored a sense of mounting panic and anger among Israelis, a decade after the end of the last Palestinian uprising. The usually busy downtown streets of Jerusalem are already largely empty, and Israeli media reported that credit card transactions last week were down 11 percent nationwide from the prior year.
"The fact that people aren't in the mood to spend money and enjoy themselves has an effect on quite a few aspects of the economy," said Dan Propper, chairman of foodmaker Osem .
But he said: "If this wave will be over soon, we will not see any effect on the (growth) figures."
On the heels of sluggish global growth, Israel's economy slowed to a 0.1 percent annualised growth rate in the second quarter, according to the Central Bureau of Statistics. It estimates 2.5 percent growth for all of 2015 - below economists' initial expectations of 3.3 percent.