Israel: Business confidence inches up in July while consumer confidence deteriorates
August 10, 2017
In July, the Central Bureau of Statistics’ (CBS) consumer confidence index fell to minus 13.1 points from minus 9.3 points in June. The index remains firmly entrenched below the crucial 0-point mark that separates optimism from pessimism. Consumer confidence has remained in negative territory since the survey began in March 2011. The deterioration of confidence came on the back of a less optimistic view of households’ economic situation and job opportunities. Consumers’ expectations regarding their ability to save, however, improved while households’ opinion regarding the country’s economic situation was unchanged. Consumer confidence was likely deflated by the allegations of corruption and bribery surrounding Prime Minister Netanyahu which have surfaced recently.
The business confidence index came in at virtually the same level as the previous month. It increased marginally from 19.5 points in June to 19.6 points in July, the highest reading in three months.
Author: Jan Lammersen, Economist