The Israel Consumer Confidence Index fell by another 5.2 points in May 2010 to 93.9 points (baseline 100 = 1996), after falling 4.2 points in April, and rising 1.8 points in March, suggesting a switch to pessimism among consumers after a year of growing optimism. Three-month moving trend figure fell by 2.5 points to 98.8 points in May.
The drop in the Consumer Confidence Index reflects the public's growing concern about the deteriorating economic conditions, due to the budget and financial crisis in Europe, worries about a new global recession, and financial market instability.
May was the second straight month in which the items Consumer Confidence Index fell and they dropped even more sharply than in the preceding month. It is still hard to say whether there is a swing to pessimism, after months of rising optimism, but there is no doubt that the public's mood is very different from the first quarter.
The Consumer Confidence Index is compiled by Globes Research and Kesselman and Kesselman - PricewaterhouseCoopers Israel.
Published by Globes [online], Israel business news - www.globes-online.com - on June 6, 2010
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