The Israel Consumer Confidence Index unexpectedly rose by six points in September to 75.2 points, despite the global financial crisis, similar to consumer confidence Indices in other countries. Nonetheless, the general trend of the index is downwards, reflecting the public's considerable pessimism in the Israeli economy.
The Consumer Confidence Index has been going down since the third quarter of 2007, even before signs of a slowdown emerged. The index indicates that the public has long sensed the pending change in the economic situation, the signs of which are now appearing in official data in the form of falling private consumption and predictions of a slowdown.
Most of the rise in Consumer Confidence Index in September was due to an upward correction in the public's assessment of the economic situation in six months. People's assessment of their personal situation in six months was unchanged. However, assessments of the current situation were quite pessimistic.
The Consumer Confidence Index is compiled by Globes Research and Kesselman and Kesselman - PricewaterhouseCoopers Israel. An analysis by Globes Research found that the most pessimistic groups are people over 50, above-average income earners, and people with a higher education - the three groups that are most at risk by the financial crisis.
Published by Globes [online], Israel business news - www.globes-online.com - on October 5, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008