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.
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