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

Click graph to enlarge

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.

Click table to enlarge

Click graph to enlarge

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

Growth in the business sector continues
Revenue in commerce and services points out to stability in recent months
  Click graph to enlarge


The Melnick State of the Israeli Economy Index increased by 0.2 percent in April 2017. The business sector growth continues. The revenue in commerce and services, which reflects domestic demand and especially private consumption, points to a stable level compared to the growth that characterized it in recent years.  It is too early to determine whether the economy's growth engine in recent years is slowing down. The industrial production index, which reflects the supply side of the business sector, rose, although it was still adversely affected by the problems of Western economies.  The import index, which includes mainly, imports of inputs for domestic production, but also consumer goods, rose and indicates that economic growth continues. The number of employee posts in the business sector did not change from the previous month, but its level reflects a strong labor market.


The April index components include: an increase of 2.5% in the industrial production index in March, following a decrease of 3.3% in February; An increase of 1.7% in revenue in commerce and services in March, following a decrease of 1.6% in February; An increase of 5.1% in the import index in April, following a decrease of 0.2% in March, and no change in the number of employee posts in the business sector in February, following a decrease of 0.9% in January.
 Click table to enlarge

 Click graph to enlarge


Sunday, April 30, 2017

The Melnick State of the Economy Index increased by 0.1 percent in March

Growth in the business sector continues
The rate of growth appears to be more moderate than at the end of 2016


 Click graph to enlarge
The Melnick State of the Israeli Economy Index increased by 0.1 percent in March 2017. Business sector growth continues, albeit at a more moderate rate than at the end of 2016 and the beginning of 2017. The revenue in commerce and services, which reflects domestic demand and especially private consumption, shows, perhaps temporarily, a stop in the growth that has characterized it in recent years, (this figure is a temporary estimate because the revenue of all industries has not yet been published). The index of industrial production, which reflects the supply side of the business sector, declined. Despite the previous positive signs, which we reported, it appears that the apparent improvement in Western economies still does not allow for the expansion of industrial exports. The index of imports, which mainly includes imports of inputs for domestic production but also consumption goods returned to show fluctuations around a positive trend. The rise in the number of employee posts in the business sector reflects strength in the labor market.


The March index components include: a 2.3% drop in the industrial production index in February, following a decrease of 0.8% in January; a decrease of 0.9% in revenue in commerce and services in February, following an increase of 1.1% in January; a decrease of 0.9% in the imports index in March, after an increase of 2.2% in February, and a 0.4% increase in the number of employee jobs in the business sector in January, following a decrease of 0.3% in December.

 Click table to enlarge

 Click graph to enlarge