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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Wednesday, December 28, 2016

The Melnick State of the Economy Index Increased by 0.1 percent in November


Economic growth continues, albeit more slowly, relative to the third quarter of 2016
Industrial production continues to decline due to export demand deficiency

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The Melnick State of the Israeli Economy Index increased by 0.1 percent in November 2016. The business sector growth continues, albeit at a slower pace, after its visible improvement in the third quarter of 2016. The revenue index of commerce and services, reflecting mainly domestic demand and private consumption, fell sharply in October, but still cannot express a turnaround in domestic demand, in particular in private consumption - which is the main source economic growth in recent years. Industrial production, which reflects the supply side of the business sector, dropped two months in a row, probably because of the strength of the shekel and the global economic situation, which limit the development of exports. The imports index, which consists mainly of imports of inputs for domestic production, but also consumer goods, dropped two month in a row, reflecting a decline in economic expansion. The steep rise in the number of employee posts in the business sector reflects strength in the labor market.


The November Index components include: a decrease of 1.8% in the index of industrial production in October, after falling 2.4% in September; a decrease of 2.7% revenue in commerce and services in October, after rising 0.3% in September; a 0.6% decrease in imports in November, after falling 0.3% in October, and an increase of 1.8% in the number of employee posts in the business sector in September, after falling 0.2% in August.

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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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