Consumer confidence back to October 2000 level

The "Globes" Consumer Confidence Index rose by 6 points in January. The public is also optimistic about jobs.

This week's declaration in Sharm el-Sheikh of an end to the violent struggle between Israel and the Palestinians, whatever comes of it, conforms to the heartfelt desires of the Israeli public. The Consumer Confidence Index reached 89 points in January 2005 (1996=100), the same level before the outbreak of the intifada in September 2000.

The "Globes" Consumer Confidence Index rose by 6 points in January, after rising 12 points in December 2004. In addition to the month-on-month rise, trend figures also show a clear rise, leading to the conclusion that we can expect a sharp rise in private consumption during the second quarter of 2005.

An analysis of a Smith Institute survey by Globes Research also found that the rise in optimism encompassed almost all population segments. There was general agreement about the general future economic situation, and about people's personal economic circumstances and job situation in six months. At the same time, the public's assessment about the current economic situation resumed its positive trend.

The positive diplomatic and security developments have apparently improved public sentiment, reinforced by good macroeconomic figures and the interest rate cuts.

A noteworthy figure in the rise in expanded index, which includes the public's job expectations. This index rose 4 points in January, after rising 15 points in December.

Published by Globes [online], Israel business news - www.globes.co.il - on February 10, 2005

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