currency 88 shekel.
(photo credit: )
The risk level of companies whose business activities are under threat dropped moderately in July as payment reliability stabilized, Business Data Israel reported Wednesday.
"Over the last three months we are seeing an improvement in the average weighted risk level of businesses in the economy, although the average risk level is still high compared with the same months last year," BDI said. "The trend points to a slowdown of the impact of the global financial crisis on Israeli businesses."
The average weighted risk level in the economy improved moderately in July to 6.19, down from 6.30 in June.
BDI said the risk level was still high compared to last July's risk level of 5.81.
BDI said 21.9 percent of the companies it analyzed in July were highly risky and dangerous, with an average weighted risk level of 9 and 10, down from 23.4% in June.
BDI said these businesses were suffering from great liquidity problems, reports of bouncing checks and big losses in revenues and profits. These difficulties were threatening their business activity for the coming year or two, BDI said.
The tourism and hotel sector had the highest risk rating in July, at 7.31. It was followed by the restaurant and cafe sector, at 7.21, down from 7.30 in June; the haulage services sector, at 7.19; and the construction sector, at 6.93.
The strongest sector in July was chemicals, at 5.42. It was followed by the paper and carton sector, at 5.65; and cosmetics and pharmaceuticals, at 5.67, down from 6.24 in June.
BDI's payment reliability report showed that the average number of "late payment" or credit days remained stable in July, at 12 days; reliability worsened by two days in June.
However, the average credit period agreed to by businesses and suppliers deteriorated slightly to 92 days, up from 91 in June.
"The stability of late payment days is an indicator of a moderate relaxation of the liquidity crunch," the BDI report said.
The ceramics and sanitary tools sector had the most lax payment norms in July, an average of 24 days beyond agreed deadlines. It was followed by the food, catering and beverage sector, at 23 days late; and newspapers and printing houses, at 20 days late.
The most reliable deals were made in the chemicals and drugs sector, where payment was on average four days late. It was followed by the paper and carton sector and the telecommunications and Internet sector, at seven days late.