Israel: Consumer confidence drops at the start of Q2; business sentiment eases from three-month high
According to data released by the Central Bureau of Statistics (CBS), consumer confidence dropped from minus 9.0 points in the prior month to minus 9.9 points in April. As a result, sentiment remained firmly entrenched in pessimistic territory, where it has been since the survey began in March 2011.
The drop in consumer confidence came on the back of decreased optimism regarding labor market developments. While consumers’ view on the state of the Israeli economy was unchanged from the prior month, their view on the their own economic situations moderated strongly. The easing of households’ sentiment on their economic situations was likely linked to a more pessimistic view on the labor market, as consumers expected unemployment to increase. Despite the expected increase in joblessness, consumers became less pessimistic regarding savings.
Business sentiment, in addition, moderated from the three-month high of 22.1 in March to 21.7 points in April.