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Bethel Finance news:
The Consumer Confidence Index fell by eight points in November 2011 after rising in September and October.
The "Europe effect" and sharp falls in the capital market reawakened Israelis' pessimism. The Consumer Confidence Index, compiled by Globes Research and pwc Israel, fell by eight points in November 2011 to 81.2 points (baseline 100 = 1996), after rising nine points in September-October.
The full story, however, is more complicated than the regular figure indicates. The public has not translated its deep pessimism about future shape of the economy and the labor market into their personal lives. Consumers are even prepared to increase their purchases of durable goods, cars, and even apartments.
In other words, for now at least, there is no danger of a global recession, but the plunge in securities' prices on the Tel Aviv Stock Exchange (TASE) has intensified the public's worries about their personal economic circumstances in six months time. This may reflect faith that the Trajtenberg committee recommendations will be implemented.
If the index's other components and the public's consumption plans were consistent with the increasing pessimism, the picture about private consumption forecasts in early 2012 would be bleak indeed. But the net balance of consumers' expectations about their personal economic circumstances in six months time remains positive.
Israelis are also prepared to buy more. The proportion of respondents planning to buy durable goods in November rose to 31.4% from 27.5% in October and from the low point of 25% in September. This is a major upward movement, after the rapid decline from the peak of social protest.
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