The Business Data Israel (BDI) average weighted risk index improved in July 2005. The number of business at risk of closure was 44,700, compared with 46,200 in June and 48,000 in January. Israel’s average weighted business risk fell to 6.09 in July from 6.12 in June and a 6.24 monthly average for 2004.
For the first time in many months, cargo was not the riskiest subsector, possibly because of the transportation of caravillas (deluxe mobile homes) in advance of the disengagement plan. Trends were mixed for other parameters.
The proportion of companies classified as very high risk improved in July. BDI said the improvement continues a trend begun in 2004, except for a hiatus in May. Nonetheless, the average weighted risk in the economy is still high, and will only be classified as moderate with the index falls below 6.
Construction was the riskiest sector in the economy in July; its average weighted risk rose to 6.62 from 6.5 in June. The cargo subsector’s average weighted risk improved, falling to 7.0 in July, compared with 7.34 in June and 7.37 in July 2004. The tourism subsector became the riskiest subsector in July, with an average weighted risk of 7.4, compared with 7.1 in June and 6.85 in July 2004.
The average weighted risk of the following subsectors deteriorated in July, compared with July 2004: marketing of durable goods 10.7%; tourism 8%; chemicals 5.6%; and food, due to the collapse of Clubmarket Marketing Chains Ltd. - 5.4%.
The average weighted risk of the following subsectors improved in July, compared with July 2004: rubber and plastics 12.9%; agriculture 10%; social services 9.9%; transport 6.9%; general services 5.2%.
Published by Globes [online], Israel business news - www.globes.co.il - on August 10, 2005