The “Globes” Consumer Confidence Index fell four points in July 2007 to 86 points, possibly indicating that the index’s rise since January may be over. The index was unchanged in June and rose by five points in May.
The main reason for the drop in the Consumer Confidence Index in July was the public’s doubts about the future both of the economy as a whole and their personal economic situation in six months. The public’s assessments about the current economic situation rose, despite declines in some current data for the second consecutive month. It seems that as far as assessments about the current economic situation are concerned, the public is still influenced by positive macroeconomic figures. However, there is increasing skepticism and uncertainty about the future.
The most prominent finding in the July Consumer Confidence Index is the drop in the public’s plans to buy durable goods, after a rise in this item for several month. Plans to buy homes also fell and fewer people are planning to buy cars. The July figures suggest that the expansion in private consumption during the past four months may end, although it is premature to draw this conclusion conclusively. The coming months will tell.
Published by Globes [online], Israel business news - www.globes.co.il - on August 2, 2007
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