Wednesday, January 31, 2018

The Melnick State of the Economy Index Increased by 0.3 percent in December

An improvement was evident in the growth of the business sector
Imports of inputs for domestic production continued
   Click graph to enlarge


The Melnick State of the Israeli Economy Index increased by 0.3 percent in December 2017. The growth rate of the business sector, which is leading the economy's growth, improved during the last months of 2017. The commerce and services revenue, which reflects domestic demand and especially private consumption, continues to expand, pointing to an increase in private consumption and its contribution to economic growth. Despite the rise in the index of industrial production, which reflects the supply side of the business sector, its level continues to reflect the difficulties facing industry. The strengthening of the shekel makes it difficult for industrial exports on the one hand, and increases import competition on the other hand. The imports index continues to expand at a rapid rate, reflecting mainly the increase in imports of inputs for domestic production, signaling optimism for continued economic growth. The number of employee posts in the business sector continues to reflect its strength in the labor market.

The December Index components include: an increase of 1.8% in the index of industrial production in November, following a decrease of 1.0% in October; an increase of 1.3% in revenue in commerce and services in November, following an increase of 1.9% in October; the imports index rose by 1.6% in December, following an increase of 3.9% in November; a decrease of 0.4% in the number of employee posts in the business sector in October, following an increase of 0.7% in September.
  Click table to enlarge

  Click graph to enlarge


Wednesday, December 27, 2017

The Melnick State of the Economy Index Increased by 0.2 Percent in November

The expansion of the business sector reflects economic growth
Import of inputs for domestic production and consumption goods continues
  Click graph to enlarge

The Melnick State of the Israeli Economy Index increased by 0.2 percent in November 2017. The expansion of the business sector continues and reflects the continued economic growth. The commerce and services revenue, which reflects domestic demand and especially private consumption, returned to rise, a trend that has characterized it in recent years, and points to the contribution of private consumption to economic growth. The level of the index of industrial production, which reflects the supply side of the business sector, continues to expose the difficulties faced by the industrial sector. The strengthening of the shekel makes it difficult for industrial exports on the one hand, and increases imports competition on the other hand. In the short term, these two factors harm the ability of the economy to exploit its growth potential. The imports index continues to expand at a rapid rate, reflecting mainly an increase in imports of inputs for domestic production, but also an increase in imports of consumption goods. The number of employee posts in the business sector returned to rise reflecting strength in the labor market.


The November index components include: a decrease of 1.5% in the industrial production Index in October, following an increase of 1.1% in September; an increase of 1.1% in the revenue in commerce and services in October, following a decrease of 1.8% in September; an increase of 3.9% in the imports index in November, after an increase of 1.0% in October, and an increase of 0.8% in the number of employee posts in the business sector in September, following a decrease of 0.3% in August.
 Click table to enlarge

 Click graph to enlarge 


Wednesday, November 29, 2017

The Melnick State of the Economy Index increased by 0.1 percent in October

Business sector expansion continues
The rise in imports of inputs for production continues
 Click graph to enlarge

The Melnick State of the Israeli Economy Index increased by 0.1 percent in October 2017. The expansion of the business sector continues. The rise in revenue of commerce and services, which reflects domestic demand and mainly private consumption, declined, but its level is still high and reflects the lead in economic growth by private consumption. The level of the index of industrial production, which reflects the supply side of the business sector, reflects the problems in manufacturing, despite the improvement in global markets. Apparently, the strength of the shekel continues to have a negative impact on its development, through its effect on exports of the industrial sector. The problems in industrial production constitute a constraint on the ability of the economy to exploit its growth potential. The import index, which mainly includes imports of inputs for domestic production, continues to expand at a rate that will enable faster growth in the coming months. The number of employee posts in the business sector declined, but its the level reflects a strength of the labor market.

The October index components include: an increase of 0.9% in the industrial production index in September, after no change in August; a decrease of 2.1% in revenue of commerce and services in September, following an increase of 0.6% in August; an increase of 0.5% in the imports index in October, after an increase of 0.5% in September, and a decrease of 0.2% in the number of employee posts in the business sector in August, following an increase of 0.1% in July.
Click graph to enlarge
 Click table to enlarge