The Consumer Confidence Index fell 3.4 points in July to 73.3 points, a four-year low, after remaining almost unchanged in June. The Consumer Confidence Index is compiled by Globes Research and Kesselman and Kesselman - PricewaterhouseCoopers Israel.
The drop in the public's expectations for the next six months dragged the index down, and indicate that private consumption will slow during the rest of the year. Over the past year, the index indicated that a slowdown was in the offing, and it is now being seen in official figures. The drop in imports of durable goods in July is the latest report to this effect.
The public is also increasingly pessimistic about the job market, despite positive figures that showed that the unemployment rate fell to a 19-year low of 6.1%. The public apparently does not believe that the strong job numbers will last, and has internalized the repercussions of the expected slowdown.
The public's assessment of the economic situation dropped sharply in July. This pessimism, which has been growing rapidly in recent months, shows a marked change from the preceding period. The public's assessment about the economic situation in six months time was stable in July, although this does not change the general downward trend of the past year.
The public's assessment about their personal economic situation in six months time has been highly volatile in recent months, and reflect the public's fears and confusion about the future. These attitudes are the main driver of the public's future purchasing decisions.
Published by Globes [online], Israel business news - www.globes-online.com - on August 6, 2008
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