Bank Hapoalim: Israeli Consumer Confidence Index fell in August

The present situation index fell by 5.9 points and the expectations index was down by 1.8 points
 
Bank Hapoalim’s and TNS Teleseker’s Israeli consumer confidence index fell by 3.4 points in August to a level of 125.6 (April 2002=100). The present situation index fell by 5.9 points and the expectations index was down by 1.8 points.
 
In a statement Bank Hapoalim economists noted that : We believe that the decline in consumer confidence, to a certain extent, derives from an expected decrease in public's purchasing power, following the recent and upcoming tax hikes: VAT, sales taxes and direct taxes, and the increase in the price of fuel. Although recent economic data point to continued expansion, the prevailing view is that a slowdown in growth is in place and it might lead to a rise in unemployment.
 
Bank Hapoalim economists also noted: "The Consumer Confidence Index is in a downturn trend and its level is still lower than the high levels that prevailed in 2010. We believe that the decline in consumer confidence, to a certain extent, derives from an expected decrease in public's purchasing power, following the recent and upcoming tax hikes: VAT, sales taxes and direct taxes, and the increase in the price of fuel.
 
"Although recent economic data points to continued expansion, the prevailing view is that a slowdown in growth is in place and it might lead to a rise in unemployment. The economic indicators published by the Israeli central bureau of statistics, were relatively positive: an increase in credit card purchases, a surprising drop in unemployment rate to a level of 6.5% in July, with a rise in employment, and a sharp increase in new housing purchases in the last two months."
 
In the USA, the Conference Board Consumer Confidence Index fell in August and is now at its lowest level since Nov. 2011. Consumers were apprehensive about business and employment prospects, but more optimistic about their financial prospects despite rising inflation expectations.
 The Consumer Confidence Index of Bank Hapoalim and TNS in Israel is based on a TNS Teleseker monthly poll covering a national sample of 1,000 respondents representing the vast majority of the adult (18+) population of Israel. The CCI index has been published in Israel since April 2002. TNS, a leading global marketing information group, conducts similar CCI polls in 18 countries worldwide including the conference Board CCI in the USA and the Nationwide CCI in the UK. Numerous studies show that consumer confidence indices are a leading indicator of developments in the private consumption.