The Israel Consumer Confidence Index fell by 4.2 points in April 2010 to 99.1 points, after rising by 1.8 points in March and 5.6 points in February. The index is back below the 100-point level from which it rose in February. The index is compiled by Globes Research and Kesselman and Kesselman - PricewaterhouseCoopers Israel.
In trend figures, however, the Consumer Confidence Index rose by 1.1 points in April to a record 101.3 points (100 point baseline = 1996). The trend figure is based on the three-month moving average of the index.
Analysis of the Consumer Confidence Index by the Smith Institute found that plans to buy durable goods fell from 32.9% of the public in March to 31.2% in April. This was the second consecutive monthly decline in this component of the index, after rising steadily in the five preceding months.
Despite the drop in the Consumer Confidence Index in March and the drop in plans to buy durable goods, private consumption will probably continue to increase, albeit slowly, in the second and third quarters of 2010.
Whereas the first quarter was characterized by over-optimism by households, the second quarter has opened with doubts. They are mainly seen in worries about further developments in the fiscal crisis in Europe, especially in euro bloc countries, and their effect on Israel.
Published by Globes [online], Israel business news - www.globes-online.com - on May 5, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010