Against all predictions, the risk level of businesses on the brink of collapse did not worsen and actually improved during the month of August, while the level of risk in the economy as a whole fell during the month.
Business Data Israel, which releases the monthly report, had warned in its assessment for July that the risk level of businesses on the brink of collapse was expected to grow as a result of repercussions of the war. Already in July, an additional 500 companies had been indicated to be in danger of closure.
BDI attributed the albeit modest improvement in the risk level of businesses to an increase in private consumption heading into the Jewish holiday period. Looking ahead, economists at BDI said that private consumer demand was expected to increase at an even faster rate this year as the Jewish holidays in September and October fall on weekends rather than working days as in other years so consumers will have more time to make their purchases.
The holidays, BDI said, started to boost private consumer demand and helped 160 businesses move out of the risk level of closure, despite the impact of the second Lebanese war.
Overall figures for the economy showed that at 5.84 (down from 5.86 in July) the situation of many businesses and companies was good compared with the same period last year when the risk level stood at 6.1 on a scale from 1 to 10.
The number of companies at high risk of closing their doors fell from 44,800 in July to 44,640 in August. In August, 13.9 percent of businesses in Israel were ranked by the BDI risk index to be at a particularly high risk compared with 14% in July.
Sector by sector business risk analysis showed that the communications services sector experienced an improvement of 9% in August this year in comparison with the same period last year. The risk level of businesses in the communications sector in August dropped to 6 from 6.25 in July and from 6.6 last August.