Wednesday, August 30, 2017

The Melnick State of the Economy Index Increased by 0.1 Percent in July


Minor expansion in the business sector
Private consumption is slowing down
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The Melnick State of the Israeli Economy Index increased by 0.1 percent in July 2017. The business sector expanded slightly against the background of moderate growth in the last few months. The commerce and services revenue, which reflects domestic demand and mainly private consumption, indicates stability in recent months and its level is similar to that at the beginning of the year. The economy growth engine of recent years may be moderating. The industrial production index, which reflects the supply side of the business sector, partially corrected the steep decline of the previous month, but, despite the improvement evident in the global markets, the strength of the shekel appears to continue to have a negative impact on its development through its effect on exports of the industrial sector. The import index, which mainly includes imports of inputs for domestic production, shows a moderate trend of expansion. The number of employee posts in the business sector declined over the last two months; however, the level of jobs still reflects a strong labor market.

The July Index components include: an increase of 1.9% in the industrial production Index in June, following a decrease of 3.8% in May; an increase of 1.4% in commerce and services revenue in June, following a decrease of 1.4% in May; an increase of 0.7% in the imports index in July, after a decrease of 2.7% in June, and a decrease of 0.1% in the number of employee posts in the business sector in May, following a decline of 0.2% in April.
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Wednesday, July 26, 2017

The Melnick State of the Economy Index fell by 0.1 percent in June

A slowdown is evident in the expansion of the business sector
All components of the index published this month indicate decreases

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The Melnick State of the Israeli Economy Index fell by 0.1 percent in June 2017. A slowdown in the expansion of the business sector is evident, against a backdrop of moderate growth in the last few months. All components of the Index published this month point to a decline. The revenue in commerce and services, which reflects domestic demand and mainly private consumption, points to a two-month decline. It is possible, although not clear to what degree, that the engine of economic growth of recent years is moderating. After two months of good expansion in the industrial production index, reflecting the supply side of the business sector, the index fell sharply this month. It appears that the world market situation and the relative strength of the shekel continue to have a negative impact on its development through their effect on exports of the industrial sector. The imports index, which includes mainly imports of inputs for domestic production, declined in the last two months. The number of employee posts in the business sector fell by 0.1 percent in May, despite the decline in the number of employee posts in recent months; the level of jobs still reflects strength in the labor market.

The June Index components include: a decrease of 4.1% the industrial production Index in May, following an increase of 2.6% in April; a decrease of 1.8% in the commerce and services revenue in May, following a decrease of 0.2% in April; a decrease of 2.4% in the Imports index in June, after a decrease of 0.5% in May, and a decrease of 0.1% in the number of employee jobs in the business sector in April, following no change in March.

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Wednesday, June 28, 2017

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

The economy continues to grow at a moderate rate
There is stability in revenue in commerce and services

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The Melnick State of the Israeli Economy Index increased by 0.2 percent in May 2017. The economy continues to grow at a moderate rate. In contrast to the continuous growth trend of recent years, the revenue in commerce and services, which reflects domestic demand and especially private consumption, shows moderation. However, it is still too early to determine whether the growth engine of the economy in recent years has changed direction. The index of industrial production, which reflects the supply side of the business sector, points to a positive trend, although the situation in world markets and the relative strength of the shekel continues to have a negative impact on its development. The import index, which mainly includes imports of inputs for domestic production, but also consumption products, remains stable at a high level. The number of employee posts in the business sector did not change from the previous month, but its level still reflects strength in the labor market.


The May index components include: an increase of 1.9% in the industrial production Index in April, following an increase of 4.0% in March; a decrease of 0.1% in the revenue of commerce and services in April, following an increase of 2.0% in March; a decrease of 0.2% in the imports index in May, following an increase of 5.5% in April; and no change in the number of employee posts in the business sector in March, following a decrease of 0.2% in February.

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