Survey finds modest drop in consumer confidence amid war

8 November 2023, 10:17 am

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Israelis stand at a Jerusalem cafe to mark a minute of silence to remember the victims who were murdered and abducted by Hamas terrorists a month earlier, on November 7, 2023. (Yonatan Sindel/Flash90)

A monthly survey by Bank Hapoalim finds that consumer confidence has dropped only moderately in October, despite the country being plunged into war.

An index published by the bank and the Kantar market research house puts consumer confidence at 122.5, down from 127.9 in September, but higher than the 121.5 recorded in May, at the height of anti-government protests against plans to overhaul the judiciary.

Nonetheless, the 5.4 point fall is the largest since confidence tanked in early 2020, as the coronavirus pandemic shut down much business activity.

Fewer than 10 percent of respondents to the bank survey say now is a good time for a large purchase, down several points from last month.

A survey released by the Central Bureau of Statistics on November 1 found that 37% of businesses had experienced a sharp drop in sales. It also found that 51% of businesses said their revenue was down significantly from expectations since the war broke out October 7.

The bank survey also finds that confidence in the state of the nation is up slightly, with 25.1% saying the country is headed in the right direction, compared to 22.5% who said so a month earlier.