The slowing growth in credit card purchase points to weakening private consumption, which accounts for more than 40% of GDP.
In the latest piece of disappointing macroeconomic news, the Central Bureau of Statistics today reported that purchases charged to credit cards rose by 5% in March-May 2010. The rate of growth slowed from 7.7% in December-February, and 8-12% in recent years.
The slowing growth in credit card purchase points to weakening private consumption, which accounts for more than 40% of GDP. The figures come on top of disappointing macroeconomic reports last week, which point to slowing growth.
The Central Bureau of Statistics also announced today that the index of prices of import goods (excluding ships, planes, diamonds, and energy products) fell 0.3% in the first quarter of 2010, after rising by 1.6% in the preceding quarter. The index of prices of export goods (excluding ships, planes, and diamonds) fell by 2.5% in the first quarter after rising 1.4% in the preceding quarter. The relative sharper drop in export prices compared with import rises means that Israel's terms of trade worsened by 2.2% in the first quarter, following the deterioration in the second half of 2009.
Published by Globes [online], Israel business news - www.globes-online.com - on June 24, 2010
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