Business getting riskier, BDI says

All of the five riskiest sectors experienced a worsening in business risk in September compared with the preceding month.

By MATTHEW KRIEGER
October 23, 2007 08:18
1 minute read.

The average weighted risk level in the economy jumped three percent in September, the first such increase since April after steady improvement over the first eight months of the year, according to Business Data Israel, which expects conditions to continue to deteriorate over the last quarter. "The worsening in business risk in Israel in September came as a result of certain financial indicators such as a decrease in the total sales of companies and also a drop in financial assets," Eyal Yanai, co-CEO of BDI, told The Jerusalem Post. "We expect these indicators to continue to worsen over the last three months of this year." The research company's business risk index rose to 5.84 in September from 5.67 in August while the risk level of businesses in danger of closing rose to 13.7% in September from 12.4% in August. A sector by sector review found chemicals to be the strongest with an average business risk of 4.9, followed by the paper and carton industry with an average business risk level of 5.25 and then metalworks with an average risk of 5.40. All of the five riskiest sectors experienced a worsening in business risk in September compared with the preceding month. Topping the list of the riskiest sectors with a business risk rating of over seven was haulage, cargo and transport services. Other risky sectors were general services, entertainment and recreation services, durable goods, wholesalers and restaurants, cafes and pubs. Year-on-year comparisons showed that the best improvement in the agriculture industry and the biggest deterioration in the paper and carton industry.


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