Melnick State of the Economy Index Declined by 0.9% in January

The Index indicates a worsening in economic recession.the recession worst as a result of sharp decrease of domestic demands.

The Melnick State of the Economy Index declined by 0.9 percent in January 2009. January's Index indicates a deterioration of the recession in economic activity. This month's index was influenced by an unusual decline of 6.1% in the revenue in commerce and services in December, a continuation of the declining trend which began in August 2008. This development is characterized by a decline of domestic demand, especially a decline in private consumption, which, with together with the drop of foreign demand, causes the recession. Moreover, the Import Index continues declining, especially import for domestic production, as a continuation of the sharp decline marked in December 2008.

The components of the December Index include: decrease of 0.7% in the Industrial production index in December, after an decrease of 0,6% in November; a sharp decrease of 6.1% in the revenue in commerce and services in December, after an decrease of 1.2% in November; a decrease of 0.9% in the Imports Index in January, after an decrease of 17.2% in December, and an increase of 1.3% in the number of employee posts in the business sector in November, after a decrease of 1.9% in October.