Israelis Hesitate on Major Purchases Despite Improved Consumer Confidence

Consumer confidence in Israel saw a slight improvement in August, yet Israelis remain hesitant to make large purchases, particularly for furniture and appliances. The Central Bureau of Statistics reported that the consumer confidence index rose to minus 20% in August from minus 22% in July. While this indicates a marginal improvement, the index remains in negative territory, suggesting a prevailing public pessimism about the economic situation.

A significant decline was observed in the intention to make major purchases. The balance for intentions to buy large items like furniture and appliances in the coming year dropped to minus 32%, down from minus 25% in the previous month. This signals an expectation of fewer large-scale purchases in the upcoming year compared to the past year.

Conversely, expectations regarding Israel's overall economic future have improved. The balance for the expected change in the country's economic situation over the next year increased to minus 24%, a notable rise from minus 40% in July. The outlook for household finances also shows mixed signals, with the balance for the past year's economic change at minus 20%, while the expected change for the coming year is only minus 3%.

The data also revealed differences across demographic groups. In August, the consumer confidence index was minus 18% among the Jewish population and minus 26% among the Arab population. For employed individuals and those not employed, the index stood at minus 20%. The consumer confidence index ranges from minus 100 to plus 100, with higher scores indicating greater optimism and lower scores reflecting increased pessimism.