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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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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