For the first time in ten years, the Consumer Confidence Index, compiled by Globes Research and Kesselman and Kesselman - PricewaterhouseCoopers Israel, has crossed the 100-point threshold. The index rose by 5.6 points in February 2010 to 101.5 points (1996 baseline = 100), after rising by 3 points in January, and falling by 1.1 points in December.
The rise in the Consumer Confidence Index was due to the continued improvement in the public's assessment about the current economic situation and assessments about their personal economic situation in six months. The component about the assessment of the general economic situation in six months fell slightly. The results suggest that optimism has returned and is spreading, countered by hesitation about the functioning of the economy in the coming months.
The public's plans to purchase durable goods rose to 33.2% of respondents in February from 32.2% of respondents in January. February was the fifth consecutive month in which this component of the Consumer Confidence Index rose, after remaining unchanged in July-September 2009.
The rise in the Consumer Confidence Index and the public's plans to purchase durable goods indicate that private consumption will continue to grow during the first months of 2010.
Private consumption per capita of perishable goods rose by an annualized 2.4% in the second half of 2009, and private consumption per capita of durable goods rose by 23.9%.
Published by Globes [online], Israel business news - www.globes-online.com - on March 3, 2010
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