Wednesday, March 29, 2017

The Melnick State of the Economy Index increased by 0.3 percent in February

Business sector growth continues
Private consumption continues to lead growth

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The Melnick State of the Israeli Economy Index increased by 0.3 percent in February 2017. The accelerated business sector growth, which began at the end of 2016 and the beginning of 2017, continues. The rise in revenue in commerce and services, which reflects domestic demand and especially private consumption, continues to point out that economic growth has been led, in recent years, by private consumption. Industrial production, which reflects the supply side of the business sector, did not change from the previous month, but its relatively high level was maintained. It appears that the apparent improvement in Western economies will allow the expansion of industrial exports, after years of stagnation due to the global financial crisis of the past decade. The imports index, which mainly includes imports of inputs for domestic production but also consumption products, rose again, and the trend appears to be positive. The level of employee posts in the business sector remained high due to its rise in recent months; this trend reflects strength in the labor market.

The February index components include: no change in the index of industrial production in January, following an increase of 0.4% in December; an increase of 0.8% in the revenue in commerce and services in January, following a decrease of 0.2% in December; an increase of 2.5% in the imports index in February, after a decrease of 7.7% in January, and a decrease of 0.2% in the number of employee posts in the business sector in December, following an increase of 1.9% in November.


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Wednesday, February 22, 2017

The Melnick State of the Economy Index increased by 0.3 percent in January

We recognize some acceleration in economic growth
Relatively high levels in industrial production and revenue in commerce and services remain

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The Melnick State of the Israeli Economy Index increased by 0.3 percent in January 2017. At the end of 2016 and the beginning of 2017 we identify some acceleration in the growth rate of the business sector. The revenue in commerce and services, reflecting domestic demand and mainly private consumption fell slightly, however, remained high after his sharp rise in the previous month. Domestic demand, especially private consumption, still continues to be the main factor of growth of the economy. Industrial production, that reflects the supply side of the business sector, fell slightly but also kept the relatively high level, after the steep increases in the previous month. The decline in the imports index, which consists mainly of imports of inputs for domestic production but also consumer goods, was roughly similar to the rise in the previous month. The number of employee posts in the business sector reflects the strength in the labor market.


The January Index components include: a decrease of 0.5% in the index of industrial production in December, after rising 4.5% in November; a decrease of 0.8% in revenue in commerce and services in December, after rising 3.2% in November; a decrease of 8.4% in the Imports Index in January, after rising 6.8% in December, and an increase of 1.8% in the number of employee posts in the business sector in November, after falling 3.0% in October.

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Wednesday, January 25, 2017

The Melnick State of the Economy Index increased by 0.3 percent in December

Economic growth continues
Steep increases were recorded in industrial production and in revenue in commerce and services

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The Melnick State of the Israeli Economy Index increased by 0.3 percent in December 2016. Growth in the business sector continues. The revenue in commerce and services, reflecting domestic demand and mainly private consumption, rose sharply at a rate greater that its decline in the previous months. Domestic demand, especially private consumption, continues to be the major factor in the growth of the economy. Industrial production, that reflects the supply side of the business sector, also rose sharply but, it is unable to break its deadlock, probably because of the strength of the shekel and the global economic situation, which limits the development of exports. The rise in the imports index, which includes imports of inputs for domestic production but also consumer goods, more than compensated for the decline in recent months. Despite the decline in the number of employee posts in the business sector its trend reflects strength in the labor market.

The December index components include: an increase of 3.3% in the index of industrial production in November, after falling 1.5% in October; an increase of 3.2% in revenue in commerce and services in November, after falling 2.6% in October; an increase of 7.2% in the imports index in December, after falling 1.2% in November, and a decrease of 2.9% in the number of employee posts in the business sector in October, after a 1.7% increase in September. 
  
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