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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