Wednesday, November 30, 2016

The Melnick State of the Economy Index increased by 0.2 Percent in October

Economic growth continues at the beginning of the fourth quarter of 2016
At this time, private consumption continues to be the engine of economic growth
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The Melnick State of the Israeli Economy Index increased by 0.2 percent in October 2016. Growth in the business sector, at the beginning of the fourth quarter of 2016, continues after its improvement in the third quarter. The revenue in commerce and services, reflecting mainly domestic demand and private consumption, continues to rise. Despite the decline in private consumption growth it continues to be a major factor in the growth of the economy. Industrial production, which reflects the supply side of the business sector does not rises likely due to the global economic situation, which is a limitation to the development of exports. The imports index, which consists mainly of imports of inputs for domestic production but also consumer goods, continues to oscillate around a given level, with no clear upward or downward trend. The high level of employee posts in the business sector is consistent with the improvement in the economy.


The October Index components include: a decrease of 1.2% in the index of industrial production in September, after rising 3.3% in August; a decline of 0.8% in revenue in commerce and services in September, after rising 0.2% in August; a decrease of 0.8% in the Imports Index in October, after rising 1.6% in September, and a 0.1% decrease in the number of employee posts in the business sector in August, after rising 0.5% in July.
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Monday, October 31, 2016

The Melnick State of the Economy Index increased by 0.2 Percent in September

There appears to be a slight improvement in economic growth
An improvement is seen in industrial production
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The Melnick State of the Israeli Economy Index increased by 0.2 percent in September 2016. Business sector growth continues at a moderate pace and it seems there is a slight improvement in the growth rate. An improvement is measured in the industrial production index, which reflects the supply side of the business sector. Apparently the industry continues to be constrained by the global economic situation which has not shown improvement in recent months. The revenue in commerce and services, reflecting mainly domestic demand and private consumption, stabilized at a high level and continues to highlight the contribution of consumption to economic growth. The imports index, which consists mainly of imports of inputs for domestic production but also consumer goods, continues to oscillate around a given level, with no clear upward or downward trend. The increase in the number of employee posts in the business sector is consistent with the improvement in the economy.


The September Index components include: an increase of 3.8% in the index of industrial production in August, after falling by 2.1% in July; an increase of 0.1% in revenue in commerce and services in August, after falling 1.4% in July; an increase of 2.3% in the Imports Index in September, after falling 2.6% in August, and an increase of 0.5% in the number of employee posts in the business sector in July, after rising 0.3% in June.
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Wednesday, September 28, 2016

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

Business sector growth continues at a moderate rate
Private consumption growth leads GDP growth
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The Melnick State of the Israeli Economy Index increased by 0.1 percent in August 2016. Growth in the business sector continues at a moderate rate.  The high level of revenue in commerce and services, reflecting mainly domestic demand and private consumption, continues illustrating to the contribution of private consumption to economic growth.  As is known, private consumption has been leading economic growth in recent years. The industrial production index, which reflects the supply side of the business sector, is unable to break the deadlock of the situation it is in.  Apparently this situation will continue as long as the global economic condition does not improve from the prolonged financial crisis. The imports index, which consists mainly of import of inputs for domestic production but also consumer goods, is fluctuating around a given level without a clear trend up or down. The number of employee posts in the business sector is consistent with the moderate growth of the economy, there is no evidence of weakness in the labor market.


The August Index components include: a decrease of 2.9% in the index of industrial production in July, after rising 2.7% in June; A decrease of 0.9% revenue in commerce and services in July, after rising 1.9% in June; A decrease of 2.9% in the Imports Index in August, after rising 1.5% in July, and an increase of 0.4% in the number of employee posts in the business sector in June, after declining 0.6% in May.
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