Melnick State of the Economy Index Increased by 0.3% in August

A clear recovery from the recession is yet to be seen.

The recovery will probably be slow and over an extended period of time.

press the graph to enlarge

The Melnick State of the Economy Index increased by 0.3 percent in August 2009. The decline in the economic activity ceased; however it has not yet gotten to the point indicating a clear transition to growth. At this point it seems that the recovery will be moderate and extended, and will be characterized by moderate increases of different activities in the business sector. Latest data of all the index's components were negative, but were unable to change the evaluation of end of the decline in economic activity. Such a level of activity reflects the weakness of the labor market, which will express itself with the continued increase in the rate of unemployment.

The components of June Index include: a decrease of 2.8% in the Industrial Production Index in July, after an increase of 1.6% in June; a decrease of 3.2% in the Revenue in Commerce and Services in July, after an increase of 3.7% in June; a decrease of 0.9% in the Imports Index in August, after an increase of 5.8% in July; and no change in the Employee Posts in the Business Sector in June, after a decrease of 0.1% in May.

press the graph to enlarge press the table to enlarge