Israel’s Falling Retail Sales

CEIC Macro Watch Global - October 30, 2014 Israel’s seasonally-adjusted retail sales value index, measured as the sales revenue of consumption goods excluding fuel, decreased by 6.5% in August 2014 compared to the same month of the previous year. On a monthly basis the index declined by 2% for a second consecutive month. The sharp annual decrease in the sales value can be attributed to the peak of retail activity achieved in August 2013, and to the decreasing consumer price inflation ever since. In fact zero inflation was recorded in August 2014, further strengthening fears of impending deflation. In any event, the consumer price index excluding housing, which largely covers the retail sector, dropped by 0.7% on an annual basis during the same month. The economic downturn in Israel suggests that the war in Gaza is significantly squeezing domestic consumption, thus driving prices and sales revenues down. By Petar Chavdarov Google+ Author Profile - CEIC Analyst Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog
31st October 2014 Israel’s Falling Retail Sales