For Israeli company Sarine Technologies, which makes diamond equipment, the first half of 2023’s global economic climate proved to be a rough ride. Group revenue fell by 24% to $23.7 million for the six-month period that concluded on June 30, 2023. India, Sarine‘s largest market, saw an 18% decline in H1 revenues to $13.06 million.
Due to diminishing midstream demand for its products and services and economic unrest brought on by rising interest rates and inflation, which have dampened American consumer demand, Sarine‘s profit fell by 85% to $953,000 in the first half of 2023. The company claimed that as a result, consumer confidence dropped and disposable money decreased, which decreased the demand for polished diamonds.
After China abandoned the Zero Consumption program, a consumer spending recovery was anticipated, but it never materialized. China, the second-largest market for the diamond sector, continues to have low consumer expenditure, it was stated.
“Overall industry conditions are likely to remain challenging for the rest of FY2023,” Sarine added. “Interest rates and inflation are likely to stay elevated and the possibility of a recession in the U.S. is still realistic.”