Bank Hapoalim’s and TNS Teleseker’s Israeli Consumer Confidence rose by 1.8 points in April to a level of 131.9 points (April 2002=100). The Present Situation went up by 7.5 points and the Expectations for Such Months Hence Index was down by 2.1 points. Despite an increase in the Consumer Confidence Index, the businesses Confidence Index shows a different trend.
The business confidence index elaborated by the Central Bureau of Statistics (CBS) fell from 2.5 in March to 0.5 in April. According to the CBS, April’s decrease was due to a deterioration in the majority of the sub-components that comprise the index.
Bank Hapoalim economists: "The Consumer Confidence Index rose in April, reverting to the highest level in the past six months. During the last three months, the index was volatile at around 131 points. We estimate that the rise in the Consumer Confidence Index derived to a large extent from an improvement in the public's purchasing power – which resulted from the price decreases in the economy, the increase in the minimum wage and the low unemployment rate. We believe that the near-zero level of the interest rate contributed to a growth in consumption as a whole, and to consumption of consumer durables in particular."
In the USA the Conference Board Consumer Confidence Index dipped by 6.2 points in April. The index there fell to its lowest level for the past four months, although its level is still high in comparison with recent years. The decline in the index during April mainly derived from a deterioration in expectations component and in the employment situation index.
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.