Wednesday, March 28, 2018

The Melnick State of the Economy Index increased by 0.3 percent in February


Business sector growth shows an improvement at the beginning of 2018
Sharp fluctuations in imports of domestic production inputs continue

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The Melnick State of the Economy Index increased by 0.3 percent in February 2018. The growth in the business sector showed an improvement at the beginning of 2018. The revenue in commerce and services, which reflects domestic demand and especially private consumption, continues to point to a rise in private consumption and its contribution to the growth of the economy. The index of industrial production, which reflects the supply side of the business sector, has risen considerably in recent months, but we cannot say that the difficulties faced by the industrial have been eased. The index of imports rose sharply in February and more than compensated for the decline in January. At this stage, the sharp fluctuations appear to be due to measurement problems. The number of employee posts in the business sector continues to reflect strength in the labor market.

The February index components include: an increase of 3.9% in the index of industrial production in January, following a decrease of 0.2% in December; a decrease of 0.5% in the revenue of commerce and services in January, following an increase of 0.3% in December; an increase of 17.7% in the Imports Index in February, following a decrease of 8.7% in January, and a 0.2% decrease in the number of employee posts in the business sector in December, following an increase of 0.3% in November.

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Wednesday, February 28, 2018

The Melnick State of the Economy Index increased by 0.2 percent in January

Business sector growth continued at the beginning of 2018
In January, there was an exceptional drop in imports of inputs for domestic production
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The Melnick State of the Israeli Economy Index increased by 0.2 percent in January 2018. At the beginning of the year, business sector growth continued. The revenue in commerce and services, which reflects domestic demand and especially private consumption, continues to indicate an increase in private consumption and its contribution to economic growth, despite its slight last month decline. The index of industrial production, which reflects the supply side of the business sector, continues to reflect the difficulties faced by industry. The strengthening of the shekel makes it difficult for industrial exports on the one hand, and increases imports competition on the other. The imports index fell sharply in January, mainly due to a drop in imports of inputs for domestic production. At this stage, it cannot be determined that this constitutes a change in the imports of inputs and it appears to be an exceptional one-time event. The number of employee posts in the business sector continues to reflect strength in the labor market.

The January Index components include: a 0.5% drop in the index of industrial production in December, following a rise of 2.0% in November; a decrease of 0.4% in revenue of commerce and services in December, following an increase of 0.9% in November; a decrease of 12.8% in the index of imports in January, after an increase of 3.0% in December, and a 0.2% increase in the number of employee posts in the business sector in November, following a decrease of 0.5% in October.
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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
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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.
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