The fall was strongest in the furniture, electrical appliances, clothing and footwear.
There was a significant fall in growth in credit card use in January 2009. Data obtained by "Globes" shows that in January Israel's three major credit card companies - Isracard Ltd. managed by Haim Krupsky, Cal - Israel Credit Cards managed by Boaz Chechik and Leumi-card Ltd. managed by Dani Cohen - saw lower growth in credit card clearing of minus1% to 2.5% compared with January 2008.
In recent years credit card use in Israel has grown by 9% to 12% annually. The slowdown in credit card use is a clear indication of lower consumption and a recession in the economy. The CEO of one of Israel's credit card companies said, "This is a dramatic, lower level of consumption. Maybe because of the war the slowdown in use was more severe but we certainly don't expect double digit growth in 2009. We will get a better indication in February, but according to my estimates we will finish 2009 with an increase of just 3% to 4% in credit card use."
Figures from the credit card companies indicates that food consumption, which represents 20% of the average purchases of a credit card, are growing at the same rate as the market but other sectors such as furniture, electrical appliances, and clothing and footwear have seen a 10% to 15% fall in credit card purchases.
Published by Globes [online], Israel business news - www.globes-online.com - on February 9, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009