1.
GENERAL
This publication presents detailed estimates of the composition of private consumption
expenditure by industry and by type, at current prices and at 2010 prices, for the period
1995–2013. All of the data are presented at market prices, including net VAT (VAT paid less
VAT refunded).
The private consumption expenditure in this publication is composed of several categories:
a. Total private consumption expenditure (Tables 1–3);
b. Private consumption expenditure on food, beverages and tobacco (Tables 4–8).
c. Private consumption expenditure on industrial goods (Tables 9–13).
d. Private consumption expenditure on services (Tables 14–15).
e. Private consumption expenditure on housing services (Table 16).
f. Private consumption expenditure on fuel, electricity and water (Table 17).
g. Consumption expenditure of private non-profit institutions (Table 18).
h. Gross domestic product per capita and actual individual consumption expenditure
per capita, at international prices (Table 19).
2.
MAIN FINDINGS
In 2013, private consumption expenditure reached NIS 593.2 billion, which constituted
56.5% of the gross domestic product and 43.0% of the total use of resources.
Private consumption expenditure at constant prices increased in 2013 by 3.3%, following
an increase of 3.1% in 2012 and of 2.9% in 2011.
Private consumption expenditure per capita in 2013 amounted to NIS 73,600.
Private consumption expenditure per capita at constant prices increased in 2013 by
1.4%, following an increase of 1.2% in 2012, and 1.0% in 2011. In 2013, the expenditure per
capita was 7.6 times greater than the expenditure in 1950.
From 1951 to 1970, private consumption expenditure per capita increased by an average of
4.4% per year. From 1971 to 1980, the increase in expenditure decreased to an average of
2.6% per year. This was followed by average increases, per year, of 3.8% in the 1980s and
3.5% in the 1990s. In 2001–2013, private consumption expenditure per capita increased at
an average rate of 1.5% per year.
(9)
Table A.- The Increase in Private Consumption Expenditure per Capita,
Average per Year, at Constant Prices
Percentages
Years
Private Consumption Expenditure
per Capita
1951–1960
1961–1970
1971–1980
1981–1990
1991–2000
6221–2002
2007–2013
4.3
4.4
6.2
3.8
3.5
1.2
1.7
Private Consumption Expenditure, By Type
In 2013, consumption expenditure on non-durable goods was 86.8% of the private
consumption expenditure in the domestic market (at current prices). Expenditure on nondurable goods consisted of: expenditure for services – 35.3% (e.g., education, health care,
domestic help, food services, entertainment, and transportation); expenditure for housing
services – 21.2% (including the value of owner-occupied dwellings services); expenditure for
food, beverages and tobacco – 19.2%; expenditure for other non-durable goods – 3.2% (e.g.,
medication, cosmetics, and stationery); and expenditure for fuel, electricity and water – 7.9%.
Expenditure for semi-durable goods was 4.9% of the private consumption expenditure in
the domestic market (including clothing and footwear, household textiles, toys, recreational
and sport items, utensils, small electrical appliances, etc.).
Expenditure for durable goods was 8.4% of the private consumption expenditure in the
domestic market (including personal transport equipment, electronic and electrical
equipment, telecommunications equipment, furniture, jewellery, etc.).
1.- DISTRIBUTION OF CONSUMPTION EXPENDITURE OF
HOUSEHOLDS IN THE DOMESTIC MARKET, AT CURRENT PRICES
2013
Semi-durable
goods
4.9%
Durable goods
8.4%
Housing
21.2%
Fuel, electricity
and water
7.9%
Food, beverages
and tobacco
19.2%
Other nondurable goods
3.2%
Services
35.3%
( 10 )
Table B.- The Increase in Private Consumption Expenditure
per Capita, Average per Year, at Constant Prices
Percentages
Years
Private
Consumption
Expenditure per
Capita - Total
Expenditure for
Non-Durable
Goods per
Capita
Expenditure for
Semi-Durable
Goods per
Capita
Expenditure
for Durable
Goods per
Capita
6222-6222
6.2
2.4
-0.4
6.4
6222-6226
0.8
0.4
2.7
-1.3
6262-6222
2.3
1.9
3.9
5.8
2013-2011
0.7
0.6
1.6
0.7
As can be seen in Table B, the rate of increase in the expenditure on durable goods and the
rate of increase in expenditure on semi-durable goods per capita were characterized by great
fluctuations, whereas the rate of increase of the expenditure on non-durable goods per capita
was stable and relatively moderate.
From Diagram 2 – Distribution of the Consumption Expenditure in the Domestic Market, it
can be seen that the expenditure for industrial goods increased from 15.7% in 1995 to
18.2% in 2013. The expenditure for housing decreased from 21.4% in 1995 to 20.6% in
2013. The expenditure on services increased from 34.6% in 1995 to 35.4% in 2013. The
expenditure on fuel, electricity and water decreased from 7.7% in 1995 to 7.3% in 2013.
The expenditure on food, beverages and tobacco decreased from 20.7% in 1995 to 18.5%
in 2013.
2.- DISTRIBUTION OF EXPENDITURE IN THE DOMESTIC MARKET
BY TYPE, AT 2010 PRICES
100
90
20.7
18.9
19.4
18.3
18.5
7.7
7.8
8.0
7.8
7.3
15.7
16.3
16.2
17.9
18.2
21.4
20.2
21.1
20.4
20.6
80
Percentages
70
60
Food, beverages
and tobacco
Fuel, electricity
and water
Industrial goods
50
40
Housing
30
20
34.6
36.7
35.6
35.4
35.4
Services
10
0
1995
2000
2005
2010
( 11 )
2013
Private Consumption Expenditure, By Source of Supply
A distribution of private consumption expenditure by source of supply in Table C reveals that
domestic production constituted 82.9% of the total consumption expenditure in the domestic
market (at chained prices) in 2013, compared to 90.6% in 1995.
Table C.- Distribution of Private Consumption Expenditure – Domestic Production and
Imports, in selected years
Percentages
Year
1995
2000
2005
2010
2013
Private Consumption Expenditure
at Chained Prices*
Domestic
Imports
Production
90.6
88.2
88.0
83.6
82.9
10.9
12.5
12.7
16.4
17.1
Private Consumption Expenditure
at Current Prices
Domestic Production
Imports
84.5
83.9
85.0
83.6
83.9
15.5
16.1
15.0
16.4
16.1
* The estimates at 2010 prices were obtained by chaining the estimates of each year to the prices of the previous
year. Due to the chaining process, the components of the expenditure do not add up to the total, and the
percentages do not add up to 100%.
The distribution of the private consumption expenditure for industrial goods (which
constitutes 78% of the expenditure originating in imports) by source of supply (Table D)
reveals a substantial increase in the share of the imports out of the total private consumption
of industrial goods in recent years, which reached a peak of 73.6% at chained prices in 2013,
compared to 50.2% in 1995.
Table D.- Distribution of Private Consumption Expenditure on Industrial Goods –
Domestic Production and Imports , in selected years
Percentages
Private Consumption Expenditure on
Private Consumption Expenditure on
Industrial Goods
Industrial Goods
at Chained Prices*
at Current Prices
Year
Domestic
Imports
Domestic Production
Imports
Production
1995
2000
2005
2010
2013
52.2
42.6
40.9
28.2
26.5
50.2
58.6
60.2
71.8
73.6
46.9
39.7
38.0
28.2
27.3
53.1
60.3
62.0
71.8
72.7
* The estimates at 2010 prices were obtained by chaining the estimates of each year to the prices of the previous
year. Due to the chaining process, the components of the expenditure do not add up to the total, and the
percentages do not add up to 100%.
( 12 )
Private Consumption Expenditure from Domestic Production, by Industry
In 2013, the current private consumption expenditure deriving from domestic production was
distributed as follows, by industry: 19.3% from manufacturing, 4.0% from agriculture, forestry
and fishing, 3.8% from the electricity, gas, water and construction industries, and 5.9% from
gasoline and other fuels.
In 2013, the various service industries (excluding real estate activities) that supply, together,
42.1% of the private consumption from domestic production, were distributed as follows: the
share of the transportation and storage, postal and courier activities was 8.8%; the share of
the information and communication services was 4.2%; the share of accommodation and
food service activities was 8.4%; the share of art, entertainment and recreation was 3.5%;
the share of other personal services and activities of households as employers (for domestic
workers) was 2.6%; the share of education, human health and social work activities was
6.7%; the share of financial services was 5.9%, and the share of business services was
2.0%.
The share of real estate activities in private consumption expenditure from domestic
production was 24.9%, of which 22.4% was private consumption expenditure on rent and on
the imputation of services for owned dwellings, and 2.5% was expenditure for municipal
taxes and building committee fees.
3.- DISTRIBUTION OF PRIVATE CONSUMPTION EXPENDITURE
FROM DOMESTIC PRODUCTION
2013
Gasoline and
other fuels
5.9%
Electricity, gas,
water and
Services
construction
42.1%
3.8%
Housing
24.9%
Agriculture
4.0%
Industry
19.3%
( 13 )
4.- DISTRIBUTION OF PRIVATE CONSUMPTION EXPENDITURE
FOR SERVICES
2013
Business services
Transportation,
4.8%
storage, postal
Financial services
and courier
14.0%
activities
Education,
20.9%
human health
and social work
activities
Information and
15.9%
communications
10.0%
Other personal
services
6.2%
Accomodation
and food service
activities
20.0%
Arts,
entertainment
and recreation
8.3%
Consumption Expenditure of Private Non-profit Institutions
Consumption expenditure of private non-profit institutions serving households increased by
3.2% in 2013, following increases of 2.7% in 2012 and of 6.2% in 2011 (for a detailed
description, see Table 18).
( 14 )
SUMMARY TABLE E.- PRIVATE CONSUMPTION EXPENDITURE PER CAPITA
AT CONSTANT PRICES(A)
Year
Total
Excl. durable goods
Durable goods
Total
NIS
AT 1995 PRICES
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1964(B)
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
5,394
5,595
5,588
5,625
6,315
6,561
6,896
6,979
7,422
7,896
8,249
8,851
9,368
9,912
10,558
10,302
10,826
10,769
10,642
11,692
12,518
12,427
12,689
13,508
14,172
14,803
14,468
14,845
15,252
16,192
17,054
16,041
17,809
18,890
20,288
18,521
18,431
20,887
22,382
23,045
22,780
23,404
23,635
24,561
25,641
27,374
28,745
1995(C)
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
48,898
50,388
50,919
52,645
53,362
56,426
57,213
56,973
56,037
57,928
58,848
60,707
64,125
63,883
64,157
65,862
66,548
67,352
68,300
5,970
6,009
6,059
6,134
6,856
7,149
7,498
7,482
7,952
8,409
8,738
9,345
9,787
10,243
10,777
10,482
11,078
11,153
11,247
11,847
12,303
12,556
12,752
13,490
13,933
14,465
14,478
14,952
15,388
16,030
16,299
15,450
16,596
17,473
18,417
17,661
17,606
19,115
20,377
20,896
21,076
21,369
21,305
21,722
22,892
24,386
25,708
AT 2010 PRICES
45,582
46,797
47,304
48,943
49,201
51,548
52,579
52,574
52,393
53,534
54,420
56,048
58,206
57,897
58,581
59,750
60,202
61,121
61,954
134
130
117
107
133
127
139
167
180
201
225
252
298
351
417
418
419
375
299
491
668
535
572
641
754
821
675
655
663
824
1,097
985
1,389
1,544
1,844
1,232
1,210
1,816
2,024
2,146
1,812
2,071
2,343
2,819
2,745
2,980
3,036
3,606
3,830
3,860
3,967
4,317
4,909
4,743
4,552
3,923
4,557
4,601
4,820
5,917
5,970
5,592
6,112
6,346
6,221
6,338
Excl. durable goods
Durable goods
Percentage of change,
compared to the previous year
3.7
-0.1
0.7
12.3
3.9
5.1
1.2
6.3
6.4
4.5
7.3
5.8
5.8
6.5
0.7
0.8
1.2
11.8
4.3
4.9
-0.2
6.3
5.7
3.9
6.9
4.7
4.7
5.2
-3.1
-10.3
-8.6
24.3
-4.5
9.6
20.3
7.5
11.8
12.0
11.9
18.4
18.0
18.7
5.1
-0.5
-1.2
9.9
7.1
-0.7
2.1
6.5
4.9
4.5
-2.3
2.6
2.7
6.2
5.3
-5.9
11.0
6.1
7.4
-8.7
-0.5
13.3
7.2
3.0
-1.2
2.7
1.0
3.9
4.4
6.8
5.0
5.7
0.7
0.8
5.3
3.8
2.1
1.6
5.8
3.3
3.8
0.1
3.3
2.9
4.2
1.7
-5.2
7.4
5.3
5.4
-4.1
-0.3
8.6
6.6
2.5
0.9
1.4
-0.3
2.0
5.4
6.5
5.4
0.2
-10.5
-20.3
64.2
36.1
-19.8
6.9
12.0
17.7
8.9
-17.8
-3.0
1.2
24.4
33.2
-10.2
41.0
11.2
19.4
-33.2
-1.8
50.1
11.4
6.0
-15.5
14.3
13.1
20.3
-2.6
8.6
1.9
3.0
1.1
3.4
1.4
5.7
1.4
-0.4
-1.6
3.4
1.6
3.2
5.6
-0.4
0.4
2.7
1.0
1.2
1.4
2.7
1.1
3.5
0.5
4.8
2.0
-0.0
-0.3
2.2
1.7
3.0
3.9
-0.5
1.2
2.0
0.8
1.5
1.4
6.2
0.8
2.7
8.8
13.7
-3.4
-4.0
-13.8
16.2
1.0
4.8
22.8
0.9
-6.3
9.3
3.8
-2.0
1.9
(A) The table is designed to depict long term changes. The estimates at 2010 prices were obtained
by chaining estimates computed each year to the previous year's prices. The estimates at 1995
prices were obtained by chaining the annual changes computed in different base year prices.
Due to the chaining, the expenditure components do not add up to the total.
(B) A new series - see explanation in "Sources of the data".
(C) A new series - see Note 1 in the section "Terms,Definitions and Explanation".
( 15 )
SUMMARY TABLE F.- PRIVATE CONSUMPTION EXPENDITURE PER CAPITA
AT CURRENT PRICES
Year
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1964(A)
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1995(B)
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Total
0.0270
0.0312
0.0474
0.0596
0.0755
0.0863
0.0981
0.1072
0.1180
0.1284
0.1405
0.1604
0.1857
0.2126
0.2366
0.2310
0.2625
0.2808
0.2812
0.3116
0.3437
0.3625
0.4143
0.5091
0.6402
0.9272
1.2783
1.6896
2.3430
3.8158
7.06
15.05
36.12
84.52
221.53
993
3,896
6,467
8,330
9,978
11,800
13,944
16,522
19,113
22,077
26,257
28,745
30,328
33,850
36,163
39,603
42,299
45,567
46,588
48,431
47,835
49,568
51,128
54,166
57,848
60,910
62,050
65,862
68,686
70,988
73,631
Excl. durable goods
NIS
0.0248
0.0283
0.0433
0.0553
0.0701
0.0807
0.0918
0.0992
0.1093
0.1183
0.1289
0.1469
0.1682
0.1915
0.2111
0.2053
0.2359
0.2564
0.2619
0.2812
0.3008
0.3253
0.3698
0.4514
0.5618
0.8133
1.1425
1.5151
2.1007
3.3414
6.11
13.44
31.56
74.11
192.21
892
3,549
5,727
7,361
8,783
10,707
12,612
14,850
16,979
19,696
23,492
25,708
27,059
30,223
32,414
35,620
37,714
40,442
41,835
43,767
43,745
44,816
46,278
49,065
51,703
54,810
56,426
59,750
62,441
64,973
67,543
Durable goods
0.0022
0.0029
0.0040
0.0042
0.0054
0.0055
0.0062
0.0079
0.0087
0.0101
0.0116
0.0134
0.0175
0.0212
0.0256
0.0257
0.0266
0.0244
0.0193
0.0304
0.0429
0.0372
0.0444
0.0577
0.0783
0.1139
0.1357
0.1744
0.2423
0.4745
0.95
1.61
4.56
10.42
29.31
101
347
740
969
1,195
1,093
1,332
1,672
2,134
2,382
2,765
3,036
3,269
3,627
3,749
3,983
4,585
5,125
4,753
4,664
4,089
4,753
4,850
5,102
6,145
6,100
5,624
6,112
6,245
6,015
6,088
(A) See note (B) in Summary Table E.
(B) See note (C) in Summary Table E.
( 16 )
Total
Excl. durable goods
Durable goods
Nominal percentage of change,
compared to the previous year
15.6
51.9
25.7
26.7
14.3
13.7
9.3
10.1
8.8
9.4
14.1
15.8
14.5
11.3
14.2
53.1
27.7
26.7
15.2
13.8
8.1
10.1
8.2
9.0
14.0
14.4
13.8
10.2
30.7
40.6
4.8
27.0
2.9
12.5
27.1
10.4
15.8
14.7
15.5
30.5
20.9
20.8
13.6
7.0
0.2
10.8
10.3
5.5
14.3
22.9
25.7
44.8
37.9
32.2
38.7
62.9
85.1
113.1
139.9
134.0
162.1
348.0
292.5
66.0
28.8
19.8
18.3
18.2
18.5
15.7
15.5
18.9
9.5
14.9
8.7
2.2
7.4
7.0
8.1
13.7
22.1
24.5
44.8
40.5
32.6
38.6
59.1
82.9
119.9
134.8
134.8
159.4
364.0
298.0
61.3
28.5
19.3
21.9
17.8
17.7
14.3
16.0
19.3
9.4
3.7
-8.2
-20.8
57.2
41.1
-13.4
19.6
29.9
35.7
45.5
19.2
28.5
38.9
95.8
100.4
69.6
183.0
128.3
181.4
243.7
244.0
113.7
30.9
23.3
-8.5
21.9
25.5
27.6
11.6
16.1
9.8
11.6
6.8
9.5
6.8
7.7
2.2
4.0
-1.2
3.6
3.1
5.9
6.8
5.3
1.9
6.1
4.3
3.4
3.7
11.7
7.2
9.9
5.9
7.2
3.4
4.6
-0.0
2.4
3.3
6.0
5.4
6.0
2.9
5.9
4.5
4.1
4.0
11.0
3.4
6.2
15.1
11.8
-7.3
-1.9
-12.3
16.2
2.0
5.2
20.4
-0.7
-7.8
8.7
2.2
-3.7
1.2
5.- PRIVATE CONSUMPTION EXPENDITURE PER CAPITA
IN SELECTED YEARS, AT CONSTANT PRICES
Base: 1950=100.0
800
700
Indices
600
500
400
300
200
100
2005
2010
2013
2005
2010
2013
2000
1995
1990
1985
1980
1975
1970
1965
1960
1955
1950
0
6.- CONSUMPTION EXPENDITURE ON DURABLE
AND NON-DURABLE GOODS PER CAPITA,
IN SELECTED YEARS, AT CONSTANT PRICES
Base: 1950=100.0
4,000
3,500
2,500
2,000
1,500
1,000
500
2000
1995
1990
1985
1980
1975
1970
1965
1960
1955
0
1950
Indices
3,000
Consumption expenditure of durable goods per capita
Consumption expenditure of non-durable goods per capita
( 17 )
3.
TERMS, DEFINITIONS AND EXPLANATIONS2
Private consumption expenditure: The aggregate of consumption expenditures of Israeli
households and the consumption expenditure of non-profit institutions serving households,
whose main expenditures are not financed by the government. Household consumption is
calculated at consumer prices, i.e., the prices paid by households, including taxes and
expenses for transportation of the goods from the seller to the consumer.
Consumption expenditure of households in the domestic market: The breakdown of
consumption into components relates to the combined domestic expenditure of all
households (both of Israelis and of foreign residents in Israel) in the domestic market, due to
the lack of detailed current statistics on the consumption of Israelis alone.
Consumption expenditure of Israeli households: The consumption expenditure of
households in the domestic market less the consumption of foreign residents in Israel, plus
the consumption of Israelis abroad, on goods and services – including durable goods but
excluding expenditure on fixed assets such as dwellings or valuables (works of art, precious
metals and stones), which serve as investments.
Goods or services for consumption: Goods or services used by households, non-profit
institutions or government units for the direct satisfaction of individual needs or collective
needs of members of the community.
Current consumption expenditure: Includes the following expenditures:
Non-durable goods: Non-durable goods are defined as products which may be used up
entirely in less then a year, assuming a normal or average rate of physical usage.
Expenditure for services: Personal services that are used as final consumption for
households, non-profit institutions or government units to satisfy their needs.
Expenditure for housing services: Housing services are calculated as rent money when
dwellings are rented out by their owners. When the owners live in the dwelling, the value of
housing services is imputed as final consumption of the owners. Housing services are
calculated as the rental fees that would be paid on the market for accommodation of the
same size, quality and type. In addition to the rental fees or imputation thereof, housing
services include municipal taxes, building committee, and house painting or small
renovations.
Durable goods: Products which may be used repeatedly or continuously over a period of
more than a year. For example: private cars, television sets, washing machines, furniture,
jewellery etc.
2
The definitions for the period 1995–2013 are based on the System of National Accounts (SNA6228):
United Nations, International Monetary Fund, the World Bank, OECD, & Eurostat. System of
National Accounts 8002. New York, NY: Author (2009).
The definitions for the years 1950–1994 were compiled according to the recommendations of the UN
Statistical Office in 1968.
( 18 )
Semi-durable goods: Semi-durable goods are defined as products which may be used
repeatedly or continuously over a period longer than a year. In contrast to durable goods
even though the expected lifetime use of semi-durable goods is longer than a year, it is often
significantly shorter than that of durable goods, and their purchase prices are substantially
lower (e.g., wearing apparel and footwear, household textiles, books, and entertainment and
recreation items).
Consumption expenditure, excluding durable goods: Includes current consumption
expenditure in addition to expenditure for semi-durable goods.
Consumption expenditure of non-profit institutions serving households is equal to the
value of their intermediate consumption, payments to employees and indirect taxes paid on
wages and consumption of fixed capital.
Household consumption expenditure per capita at international prices: This
expenditure is calculated through special currency conversion rates, PPPs (Purchasing
Power Parities), which equalize the purchasing power of different currencies. That is, the
PPPs provide a uniform basis for estimating the purchasing power of different currencies.
Therefore the GDP calculated by the PPP is in constant prices, and the comparison between
countries reflects only the volume differences of goods and services between countries, less
the price differences between countries. The volume indices (the expenditure per capita) are
calculated by dividing the average relevant item per capita in each country by the average of
all countries participating in the calculation.
Individual consumption: The total value of the final consumption expenditure of
households, the final consumption expenditure of non-profit institutions serving households,
and government expenditure on goods and services used for individual consumption.
Classification of Goods
Goods were classified according to the Standard Industrial Classification of All Economic
Activities 2011.3
3
Central Bureau of Statistics (2012). Standard Industrial Classification of All Economic Activities 2011
Technical Publication No. 80. Jerusalem: author.
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4.
SOURCES OF THE DATA
The main estimation methods of components of private consumption are:
Estimation based on flow of goods: For part of the household consumption expenditure,
monthly data were collected on quantities of goods consumed and consumer prices. This
allows for calculation of consumption expenditures by multiplying the quantities of goods by
their prices. This estimate includes expenditures such as agricultural food products, tobacco,
domestically produced durable goods, fuel, electricity, and person-nights in hotels. Estimates
of current and constant prices are calculated for these items using this method. The sources
of data on quantities are: reports of the Agricultural Produce Marketing Board; Israel Electric
Corporation reports, sales reports of fuel companies, and reports by customs officials on
imports of goods into Israel, as well as monthly surveys of the Central Bureau of Statistics on
the supply of durable goods to the domestic market and on person-nights in hotels by rating.
The prices used in the estimates are obtained from consumer price surveys conducted by
the CBS.
Estimation based on the Household Expenditure Survey conducted annually as of 1997.
This method is to obtain data on housing services, health services, and services supplied to
households by businesses as well as data on some industrial goods and food products. The
2012 Household Expenditure Survey is the most recent one to be used as a basis for
estimating private consumption for the items listed above. The survey was also used as a
basis for extrapolating estimates for subsequent years. The 1997 Household Expenditure
Survey was used to update the series of the previous years by interpolation of the findings to
the period of the previous Family Expenditure Survey (1992/93). Extrapolation is based on
measures of revenue for the domestic market in manufacturing industries (less exports),
imports of consumer goods, and other measures.
As of 1964, the estimates of private consumption expenditure include the results of the
Household Expenditure Surveys, which cover all urban households in Israel. As of the 2012
Household Expenditure Survey, the sample includes rural households as well. In Tables E
and F, two estimates are presented for 1964, which is the linkage year.
Imports of consumption products are estimated on the basis of foreign trade data. The
classification of goods as consumer goods, investment, and inputs was updated according to
the results of the 2006 Import Destination Survey. Data on imports were updated for the
period 2006–2013, and the data were interpolated to import data for the period 1988–2006.
The consumption estimate for foreign residents in Israel and for Israelis abroad is
obtained from the travel abroad item in the Balance of Payments, after deduction of the
estimate for business expenditure.
The consumption estimate for non-profit institutions (labour expenditures and purchases
of other goods and services), at current prices, is based on the findings of the survey of
expenditures of non-profit institutions. This survey summarizes consumption expenditures
from financial statements of the institutions or from special questionnaires addressed to
( 20 )
them. For the years in which statements had not yet been received, the value of services
during the last year for which data were collected was extrapolated according to changes in
wages as reported to the National Insurance Institute. The estimates of labour expenditures
of non-profit institutions at constant prices were obtained by extrapolating according to the
change in the number of work hours of employees in each type of institution. Purchases of
other goods and services, at constant prices, were calculated using price indices adjusted for
the composition of the purchases made by the institutions.
Current purchases of goods and services by non-profit institutions, at constant prices, were
classified by the source of supply and by the characteristic production industry, based on a
detailed analysis conducted during the preparation of the Input-Output Tables for 1995.
Classification of purchases at current prices took into consideration the changes in prices for
purchases from domestic production, by industry and from imports.
Estimation of consumption expenditure of households per capita at international
prices: This estimate was based on a project for estimating the value of PPPs, which was
conducted in 2011. Data were collected from 47 countries (34 of the participating countries
were OECD members, and 13 were not). Prices for the current project were collected for a
basket of approximately 3,000 goods and services that comprise the index. Data were
collected over a period of three years, and were used to calculate the prices of individual
goods and services. Afterwards, the price ratios were weighted to the relevant expenditure
data in the National Accounts and the averages were calculated, including the GDP.
5.
COMPARISON TO PREVIOUS PUBLICATIONS
In this publication, data for the period 1995–2005 were updated following the revision for the
period 2006–2012 that appeared in the previous publication. The data were revised on the
basis of Input-Output Tables for 2006, and on the basis of the SNA2008 recommendations.
The main revisions introduced into the estimates were:
a.
The structure of the private consumption expenditure estimates series has been
changed in accordance with the Classification of Individual Consumption According to
Purpose (COICOP).
Link: COICOP Classification.
b.
The estimates of private consumption expenditure were made according to the new
International Standard Industrial Classification (ISIC Rev. 4), recommended by the
United Nations.
Link: Standard Industrial Classification of All Economic Activities 2011
c.
In accordance with recommendations of the SNA2008 guidebook (which was prepared
by five international organizations: the United Nations, the International Monetary Fund,
the World Bank, the OECD and Eurostat), the expenditure on financial intermediation
( 21 )
services that originate from interest gaps between loans and deposits were estimated
and integrated in the estimates of private consumption for 1995–2013 (FISIM – Financial
Intermediations Services Indirectly Measured).
d.
Following integration of the findings of the 2012 Household Expenditure Survey, the
estimates were updated for the following items:

Private consumption expenditure for manufacturing products: footwear;
precious stones and metals and jewellery fashioned out of such stones and
metals, and religious articles; built-in cabinets and closets; cleaning materials;
soaps and towelettes; toothpaste; shampoo and cosmetics; medications;
optical equipment; books and stationery; flowers; pets; pet food; and toys.

Expenditure for services: health services; maintenance of motor vehicles,
telephone, restaurants; and caregivers for the elderly.

Housing data: rent, owned dwellings; municipal taxes; building committee
payments.

Expenditure for food products: cereals; vegetables; sugar; salt; chocolate;
sweets, ice cream; processed fruits and vegetables; legumes; tea; coffee;
prepared food; and dairy products.
e.
Expenditure estimates for services were also updated for the various types of insurance:
Car insurance, health insurance, and dwelling insurance for 2006–2013. This was done
in accordance to SNA2008 recommendations and on the basis of data from the Capital
Market Division of the Ministry of Finance.
f.
Estimates of expenditures for purchases of imported and second-hand vehicles were
updated for 2013 on the basis of the data on vehicles in Israel for 2013.
g.
Data on cruises for 1995–2013 were updated on the basis of quarterly data on
departures of Israelis by sea, according to demographic data and data in the 2006 InputOutput tables.
h.
Car maintenance expenditures as a wage benefit were updates according to the income
tax files for 2011–2012. Data for 2013 were also updated accordingly.
i.
Data on water consumption for 2009–2013 were updated on the basis of the data on
water consumption of households. In addition, data on electricity consumption were
updated on the basis of annual statistical reports of the Israel Electric Company. All of
the data were updated from 2007 and thereafter.
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