Business sector expansion
continues
The rise in imports of inputs
for production continues
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.
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