Israelis are pessimistic about the country's expected economic situation and refrain from large purchases, the Central Bureau of Statistics revealed Wednesday. The reason behind the pessimism is the challenging previous year and the immediate lockdown of 2021.
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According to the bureau, the Consumer Confidence Indicator declined in the first half of January and currently stands at minus 16%, compared to -11 in December. April 2020 saw an all-time low of -31%.
Consumer confidence is measured on a scale of -100 to 100. The closer the indicator is to 100, the greater is the consumer confidence and vice versa. If the number is close to zero, it shows a lack of expectations for a change in the near future. The bureau's methodology adheres to all the rules outlined by the Organization for Economic Co-operation and Development for such surveys.
The Economy Index has decreased as well and currently stands at -13%, while back in December it stood at -5%. The Income Index stands at 2% and is a reason for cautious optimism; back in December, it stood at 6%. According to the survey, Israelis are not planning any significant purchases in the upcoming year, as the confidence index rose to -29% compared to last year's -24%.
The Consumer Confidence Indicator is conducted monthly among Israelis aged 21 and over. It measures the expectations that consumers have about changes in their household financial situation.
The survey aims to assess and identify upcoming changes in the economic situation, evaluate what consumer confidence is based on, and gather information about the expected changes in the price index.
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