INTRODUCTION
1.
GENERAL
This publication presents detailed estimates of the composition of private consumption
expenditure, by industry and by type, at current prices and at 2005 prices, for the years
1995–2011. All the data is 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. Private consumption expenditure of private non-profit institutions (Table 18).
h. International comparison of gross domestic product per capita and household final
consumption per capita (Table 19).
2.
MAIN FINDINGS
In 2011, private consumption expenditure reached NIS 511.0 billion, which constitutes
58.6% of gross domestic product and 42.5% of the total use of the resources.
Private consumption expenditure at constant prices increased in 2011 by 3.8%, following
an increase of 5.3% in 2010 and of 1.9% in 2009.
Private consumption expenditure per capita in 2011 amounted to NIS 65.8 thousand.
Private consumption expenditure per capita at constant prices, increased in 2011 by
1.9%, following an increase of 3.3% in 2010 and an increase of 0.1% in 2009. In 2011, the
expenditure per capita was 7.4 times greater than the expenditure in 1950.
From 1951 to 1970 private consumption expenditure per capita increased by an average of
4.3% per year. From 1971 to 1980 the increase in expenditure decreased by an average of
2.6% per year. This was followed by average increases, per year, of 3.1% in the 80’s and
3.7% in the 90’s. In 2001–2011 private consumption expenditure per capita increased at an
average rate of 1.7% per year.
- VII -
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
2001–2011
4.4
4.1
6.2
3.1
3.7
1.7
Private consumption expenditure, by type
In 2011, current consumption expenditure (total consumption expenditure less purchases
of durable goods) was 91.2% of the private consumption expenditure in the domestic market
(at current prices). 35.1% of the expenditure in the domestic market was for various services,
(such as education, health care, domestic help, food services, entertainment, transportation,
etc.); 61.8% was for housing services (including the value of owner-occupied dwellings
services); 17.8% was for food, beverages and tobacco; 9.0% was for footwear, clothing,
personal items, newspapers, books and other goods (cleaning materials, cosmetics, etc.);
and 7.5% was for fuel, electricity and water.
DIAGRAM 1.- DISTRIBUTION OF CONSUMPTION EXPENDITURE OF
HOUSEHOLDS IN THE DOMESTIC MARKET, AT CURRENT PRICES, 2011
Food, beverages
and tobacco
17.8%
Services
35.1%
Durable goods
8.8%
Clothing, footwear
and other goods
9.0%
Fuel, electricity
and water
7.5%
Housing
21.8%
Expenditure for durable goods – expenditure on personal transport equipment, furniture
and household equipment (such as refrigerators, televisions, washing machines and airconditioners) comprised 8.8% of the total private consumption expenditure in the domestic
market in 2011.
As can be seen in Table B, over all periods, the average rate of increase in expenditure on
durable goods per capita was higher than the increase in the current private consumption
expenditure per capita.
- VIII -
Table B.- The Increase in Private Consumption Expenditure
per Capita, Average per Year, at Constant Prices
Percentages
Years
Current Consumption
Expenditure per Capita
Expenditure for
Durable Goods
per Capita
1951–1960
1961–1970
1971–1980
1981–1990
1991–2000
2001–2011
4.2
3.7
6.6
6.7
3.4
1.2
2.3
7.7
2.6
4.4
4.2
6.7
From the following diagram of the distribution of the expenditure in the domestic market, it
can be seen that the expenditure on services in 2011 decreased by 0.1%, following a
decrease of 0.2% in 2010. The percentage of expenditure on housing decreased by 0.2% in
2011, after a decrease of 0.1% in 2010. The percentage of expenditure on industrial goods
increased by 0.6% in 2011, following an increase of 0.6% in 2010. The percentage of
expenditure on fuel, electricity and water decreased by 0.2% in 2011 after a decrease of
0.1% in 2010. The percentage of the expenditure on food, beverages and tobacco
remained steady in 2011, after a decrease of 0.3% in 2010.
Services
Industrial goods
Food, beverages and tobacco
- IX -
Housing
Fuel, electricity and water
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
100
90
80
70
60
50
40
30
20
10
0
1995
Percentages
DIAGRAM 2.- DISTRIBUTION OF EXPENDITURE IN THE DOMESTIC
MARKET BY TYPE, AT 2005 PRICES
Private consumption expenditure, by source of supply
A distribution of the private consumption expenditure by source of supply (Table C) reveals
that in 2011 84.0% of the expenditure in the domestic market (at current prices) was from
domestic production.
Table C.- Private Consumption Expenditure for Domestic Production and Imports
Percentages
Year
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Private Consumption Expenditure
Chained prices
Domestic
Import
Production
87.1
86.4
86.2
86.3
86.1
84.9
84.5
84.2
85.4
84.3
84.4
83.8
81.7
81.8
82.7
81.9
81.3
13.2
13.8
14.0
13.9
14.1
15.1
15.5
15.8
14.7
15.7
15.6
16.2
18.3
18.2
17.2
18.1
18.9
Private Consumption Expenditure
At current prices
Domestic Production
Import
84.5
84.3
84.3
84.7
84.6
83.8
83.9
83.9
85.0
84.1
84.4
84.1
82.3
83.2
84.7
84.3
84.0
15.5
15.7
15.7
15.3
15.4
16.2
16.1
16.1
15.0
15.9
15.6
15.9
17.7
16.8
15.3
15.7
16.0
A distribution of the of private consumption expenditure for industrial goods (which
constitutes a major part of the consumption originating in imports) by source of supply (Table
D) reveals a substantial increase in the share of the imports out of total private consumption
of this group in the last years, which reached its peak in 2007. During the period between
1995 and 2011 the share of imports out of total private consumption of industrial goods
increased from 56.6% to 67.3%.
-X-
Table D.- Distribution of Private Consumption Expenditure on Manufacturing Products
for Domestic Production and Imports
Percentages
Private Consumption Expenditure of
Private Consumption Expenditure of
Industrial Goods
Industrial Goods
Chained prices
At current prices
Year
Domestic
Import
Domestic Production
Import
Production
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
6010
2011
48.3
46.1
44.3
43.4
44.1
40.0
38.5
36.8
39.1
36.4
37.1
34.8
29.5
30.3
32.5
30.7
29.7
51.6
53.8
55.6
56.5
55.8
59.9
61.5
63.2
60.9
63.6
62.9
65.2
70.6
69.8
67.4
69.4
70.4
47.8
46.1
44.7
43.8
44.6
40.5
39.2
37.4
39.4
36.5
37.1
35.3
30.4
31.7
34.2
32.4
31.7
52.2
53.9
55.3
56.2
55.4
59.5
60.8
62.6
60.6
63.5
62.9
64.7
69.6
68.3
65.8
67.6
68.3
Private consumption expenditure from domestic production, by industry
Data on the distribution of private consumption supply from domestic production by industry
in 2011 at current prices, reveal that 25.2% were from manufacturing, 4.4% were from
agriculture, and 3.5% were from the electricity, water and construction industries.
In 2011, the various service industries (excluding housing services) that supply, together,
40.4% of the private consumption from domestic production, were distributed as follows: the
share of the transportation and communication industry was 10.4%; the share of education,
health services and social work industries was 7.0%; the share of accommodation services
was 7.4%; the share of cultural services and personal services was, together, 7.5%, and the
share of financial services was 5.3%. The public administration industry constituted 2.8% out
of the private consumption expenditure from domestic production.
The real estate and business services industry, which is composed almost entirely from
consumption of housing services, supplied 66.5% of all private consumption from domestic
production.
Consumption expenditure of private non profit institutions
The consumption of private non-profit institutions serving households increased by 4.9% in
2011, following increases of 2.6% in 2010 and of 11.8% in 2009. Data on the distribution of
this expenditure by the institution's purpose reveals that in all kinds of institutions the rate of
the expenditure in 2011 increased (see Table 18).
- XI -
TABLE E.- PRIVATE CONSUMPTION EXPENDITURE PER CAPITA, AT CONSTANT PRICES (1)
Year
Total
Excl. durable goods
Durable goods
Total
AT 1995 PRICES
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1964(2)
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(3)
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
41,215
42,356
42,575
43,891
44,428
46,807
47,275
47,055
46,043
47,701
48,395
49,944
53,158
53,032
53,109
54,884
55,944
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
Excl. durable goods
Durable goods
Percentage of change,
compared to the previous year
NIS
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
3.7
-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
2.8
0.5
3.1
1.2
5.4
1.0
-0.5
-2.1
3.6
1.5
3.2
6.4
-0.2
0.1
3.3
1.9
2.5
0.6
3.4
0.5
4.6
1.7
0.0
-0.9
2.7
1.6
2.8
4.9
-0.2
1.1
2.7
1.3
4.6
-0.4
0.4
7.9
11.6
-4.8
-4.9
-14.2
12.9
0.3
7.0
21.4
-0.1
-8.8
10.1
8.5
AT 2005 PRICES
37,256
38,200
38,439
39,753
39,932
41,758
42,485
42,501
42,128
43,279
43,961
45,201
47,425
47,308
47,831
49,132
49,776
3,999
4,184
4,169
4,186
4,517
5,043
4,801
4,566
3,918
4,422
4,433
4,743
5,757
5,748
5,241
5,769
6,261
(1) The estimates at 2005 prices were obtained by chaining estimates of each year to the previous year 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.
(2) A new series - see explanation in Chap. 4 - "Sources of the data".
(3) A new series - see explanation in in Chap. 5 - "Comparison to previous publications".
- XII -
TABLE F.- PRIVATE CONSUMPTION EXPENDITURE PER CAPITA, AT CURRENT PRICES
Year
Total
Excl. durable goods
Durable goods
Total
NIS
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1964(1)
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(2)
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
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
29,349
32,681
34,606
37,884
40,614
43,547
44,411
46,074
45,207
47,007
48,395
51,107
54,729
57,360
58,810
62,562
65,820
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
26,056
29,047
30,854
33,969
36,114
38,611
39,890
41,670
41,328
42,622
43,961
46,403
49,101
51,821
53,852
57,165
60,113
Excl. durable goods
Durable goods
Nominal percentage of change,
compared to the previous year
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
3,293
3,634
3,752
3,915
4,500
4,936
4,521
4,404
3,878
4,384
4,433
4,704
5,628
5,540
4,958
5,397
5,707
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
11.4
5.9
9.5
7.2
7.2
2.0
3.7
-1.9
4.0
3.0
5.6
7.1
4.8
2.5
6.4
5.2
11.5
6.2
10.1
6.3
6.9
3.3
4.5
-0.8
3.1
3.1
5.6
5.8
5.5
3.9
6.2
5.2
10.4
3.2
4.3
14.9
9.7
-8.4
-2.6
-11.9
13.1
1.1
6.1
19.6
-1.6
-10.5
8.9
5.8
(1) A new series - see explanation in Chap. 4 - "Sources of the data".
(2) A new series - see explanation in in Chap. 5 - "Comparison to previous publications".
- XIII -
DIAGRAM 3.- PRIVATE CONSUMPTION EXPENDITURE PER CAPITA IN
SELECTED YEARS
Quantity indices 100.0=1950
800
700
600
500
400
300
200
100
2009
2011
2009
2011
2007
2005
2003
2001
1999
1997
1995
1990
1985
1980
1975
1970
1965
1960
1955
1950
0
DIAGRAM 4.- CURRENT CONSUMPTION EXPENDITURE PER CAPITA
AND EXPENDITURE ON DURABLE GOODS PER CAPITA,
IN SELECTED YEARS
3,500
3,000
2,500
2,000
1,500
1,000
500
Durable goods per capita
- XIV -
2007
2005
2003
2001
1999
1997
1995
1990
1985
1980
1975
1970
1965
1960
1955
0
1950
Quantity indices 100.0=1950
4,000
Current consumption per capita
DIAGRAM 5.- GROSS DOMESTIC PRODUCT PER CAPITA
AND PRIVATE CONSUMPTION EXPENDITURE PER CAPITA,
QUANTITY CHANGE IN PERCENTAGES,
EACH YEAR COMPARED TO THE PREVIOUS ONE
8
4
2
0
-2
Private consumption expenditure per capita
- XV -
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
-4
1991
Percentages
6
Gross domestic product per capita
3.
TERMS, DEFINITIONS AND EXPLANATIONS1
Private consumption expenditure: the aggregate of consumption expenditures of Israeli
households and the consumption expenditure of non-profit institutions serving households,
where the major part of their expenditure is not financed by the government. Due to the lack
of detailed current statistics on the consumption of Israelis, the breakdown of consumption
into its components relates to the combined domestic expenditure of all households (both of
Israeli residents and of foreign residents) in the domestic market.
Goods or services for consumption: goods or services used by households, non-profit
institutions or government units for the direct satisfaction of the individual or collective wants
or the needs of the individuals.
Israeli households’ final consumption expenditure: expenditure by resident households,
in Israel and 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. Household consumption is calculated at consumer
prices; i.e. the prices paid by the households, including taxes and necessary expenses for
transportation of the goods from the seller to the consumer.
Consumption expenditure of households in the domestic market: due to the lack of
detailed current statistics on the consumption of Israelis, the breakdown of consumption into
components relates to the combined domestic expenditure of all households (both
households of Israeli and of foreign residents) in the domestic market.
Durable goods: durable goods are defined as products that can be used repeatedly or over
a period of a year or more, assuming average physical use.
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. The housing services produced are
deemed to be equal in value to 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, tenants committee and house painting or
small renovations.
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.
1
The definitions for the years 1995–2011 are based on the System of National Accounts (SNA93),
which was prepared by five international organizations: the United Nations, the International
Monetary Fund, the World Bank, the OECD and EUROSTAT. The new system is presented in the
guidebook: Commission of the European Communities et al (1993). System of National Accounts
1993. Brussels/Luxembourg, New York, Paris, Washington D.C.: author.
The definitions for the years 1950–1995 were compiled according to the recommendations of the UN
Statistical Office in 1968.
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Households final consumption expenditure per capita at international prices:
households’ consumption expenditure per capita as it was calculated by the OECD
organization and the statistical office of the European Union (Eurostat), during the
international comparison project for 2005 (Table 19). The project's purpose is an international
comparison of the GDP and the main expenditure articles per capita. For the comparison,
special currency conversion rates were built, PPP's – Purchasing Power Parities, which can
equalize the purchasing power of different countries. The GDP and the various articles which
are calculated by the PPP reflect only volume differences of the goods and services
purchased, between countries.
The volume indices (the expenditure per capita) are calculated by dividing the relevant article
per capita in each country by the average of all countries participating in the calculation.
Individual consumption: the total number of household final consumption expenditure, nonprofit institutions serving households' final consumption expenditure and government
expenditure on individual consumption goods and services.
Classification of Goods
Good were classified according to the Standard Industrial Classification of All Economic
Activities 1993 .2
4.
SOURCES OF THE DATA
The main estimation methods of components of private consumption are:
Estimation based on flow of goods: For some of the household consumption – agricultural
food products, tobacco, domestically produced durable goods, fuel, electricity, person-nights
in hotels, cinema visits – monthly data are gathered on quantities of goods consumed and
consumer prices. This allows calculation of consumption expenditures by multiplying the
quantities of goods by their prices. 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, the Israel Electric Corporation reports, fuel companies
sales reports, and 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 used for estimates of housing services, health services, services that were
supplied to households by businesses and for some manufacturing products and food
products. The Household Expenditure Survey for 2010 is the most recent one to be used as
a basis for estimating private consumption for the items listed above. The survey was also
2
Central Bureau of Statistics (2003). Standard Industrial Classification of All Economic Activities 1993.
Technical Publication No. 63. Second Edition. Jerusalem: author.
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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 indicators such as sales in manufacturing industries (less exports) and imports of
consumer goods.
As of 1964, the estimates of private consumption expenditure included the results of
comprehensive household survey of all urban households. Estimates for previous years were
based on household expenditure surveys that cover only urban households of employees. In
tables E and F, two estimates are presented for 1964, which is the connection 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 this year
according to the results of the 2006 Import Destination Survey. Data on imports were
updated for the period 2006–2011, and interpolation was conducted for import data for the
period 1988–2006.
The consumption estimate for foreign residents in Israel and for Israelis abroad is
obtained from the Travel 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 a survey of
expenditures of non-profit institutions. This survey summarizes consumption expenditures
from financial reports of the institutions or from special questionnaires sent to them. For the
years in which reports had not yet been received, the value of services during the last year
for which data were available was extrapolated according to changes in wages as reported to
the National Insurance Institute. The estimates for 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 institutions' purchases.
Current purchases of goods and services by non-profit institutions, at constant prices, were
classified by 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
purchasing from domestic production, by industry and from import.
Estimation of consumption expenditure of households per capita at international
prices: For calculating PPP’s, data on prices were collected for a broad range of goods and
services (approximately 3,000 items), according to specific definitions determined for all the
countries participating the international comparison project (see explanation in Chap. 3 –
“Terms, Definitions and explanations” above). For services provided to households at a
reduced rate or free of charge, data on input prices were gathered. In order to weight the
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PPP value and to calculate the product and expenditure items, the relevant expenditure data
in the national accounts were used.
5.
COMPARISON TO PREVIOUS PUBLICATIONS
In comparison to the data published in the previous publication (Private Consumption
Expenditure by Industry 1995–2010, Publication 1482, Central Bureau of Statistics,
Jerusalem 2012), the estimates of private consumption for the years 1995–2011 were
revised. The main revisions are:
a.
The estimates of private consumption expenditure for imported manufacturing and food
products were updated to 1995–2011, following integration of the findings of the 2006
Import Destination Survey. Following that survey, the distribution of imports for different
purposes (private consumption, capital formation, and inputs) was updated. The data on
imports were updated for 2006–2011, and data on imports were interpolated for 1988–
2006.
b.
The estimates of private consumption for the manufacturing and various services
products and for food products were updated to 2010–2011, following the integration of
the findings of the 2010 Household Expenditure Survey. The main items updated were:
footwear,
newspapers, computers,
cleaning materials,
cosmetics, medications,
eyeglasses and toys. In addition, the survey findings served to update the consumption
of health services, insurance, car maintenance, telephone, cable television, and
restaurants. The practice of integrating additional findings from the Household
Expenditures Survey continues, and additional items in food products have been
revised, such as: meat, sugar, chocolate, sweets, ice-cream, breakfast cereals, tea,
coffee, prepared food, and dairy products.
c.
Estimates of expenditures for services were also updated for the following items:
expenditures for payment of radio and television licence fees, expenditures for financial
services, and expenditures for dental insurance. In addition, estimates were added for
expenditures for old age homes and expenditures for nursing care insurance.
d.
Estimates of expenditures for fruit relating to the period 2006–2011 were updated on the
basis of new data. In addition, percentages of private marketing and own consumption
of fruit were revised.
e.
Estimates of expenditures for purchases of imported and second-hand vehicles were
updated for 2011 on the basis of the data on vehicles in Israel for 2011.
f.
Estimates of expenditures for maintenance of vehicles that are not owned by households
were updated according to the estimates of the number of employees who use vehicles
owned by workplaces or leasing companies, as registered in the 2009–2010 income tax
files and findings of the 2010 Household Expenditure Survey.
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g.
Estimates of expenditures for water consumption in 2010–2011 were updated on the
basis of amounts (in millions of cubic meters) of water consumption by households. In
addition, data on electricity consumption were updated on the basis of publications of
the Israel Electric Company.
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