Bank of Israel: expansion slows down in Q1

The general slowdown according to the survey was the result of a reduction in demand in the first quarter
 
The Bank of Israel (BOL) quarterly companies survey, based on 542 local firms surveyed, show that the Israeli economy was slowing down.
 
The only sectors that were spared from reduced growth were tourism and hotels, which, according to the survey, are enjoying stable growth.
 
The general slowdown according to the latest survey was the result of a reduction in demand in the first quarter.
 
The slowdown has limited companies' expansion plans. Businesses expect the shekel to weaken by about 5% against the dollar, estimating that the dollar will be worth NIS 3.66 at the end of June, compared with an average exchange rate of NIS 3.46 during the surveyed period.
 
Companies reported weaker exports, influenced by the strong Israeli shekel, and weaker local sales.
 
The average inflation rate projected by the surveyed businesses for the 12 months through March 2009 is slightly down, at 2.69%, from the 2.77% predicted in the previous survey.