Monday, September 20, 2010

The Melnick State of the Economy increased by 0.3% in August 2010

Growth of the economy continues.
It seems that global and domestic demands are expanding.

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The Melnick State of the Economy Index increased by 0.3% in August 2010. This month's index as well as the upward update of previous month's index suggest that economic growth continues. Indeed, the growth rate is lower than that of the first half of 2010, yet it is positive and business activity continues to expand. An increase of 2.6% and 2.1% in the indices of industrial production and revenues in commerece and services respectively, correct for the declines registered the previous month and clearly illustrate that the economy continues to grow. This growth reflects upon the expansion in the supply of the industrial sector, which is probably responding to demands for exports from overseas as well as expansion of local demands - probably with the main driver being private consumption.

The components of the August Index include: an increase of 2.6% in the Industrial Production Index in July, after a decrease of 0.5% in June; an increase of 2.1% in the Index of Revenue in Commerce and Services in July, after a decrease of 2.0% in June; a decrease of 5.4% in the Imports Index in August, after an increase of 2.8% in July, and a decrease of 0.2% in the number of employee posts in the business sector in June, after an increase of 0.4% in May.

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