JERUSALEM, April 10 (JTA) — Israel’s economic slowdown in the final quarter of 1996 continued into the first quarter of this year, according to the Bank of Israel. A central bank survey issued Thursday said that drops in activity were noted in most major sectors, including building, hotels and industry. The industrial sector reported a drop in output and sales, according to the report, which noted lower domestic demand for textiles and construction. The survey also noted a drop in housing starts. Hotels also reported drops in reservations from abroad, which the survey attributed to Israel’s deteriorating security situation.