The Melnick State of the Economy decreased by 0.1% in September 2010

Abnormal decrease in the index of industrial production lowered the State of the Economy Index.

Domestic demand remains stable.

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The Melnick State of the Economy Index decreased by 0.1% in September 2010. The decline in this month's index was affected by an unusual decline of 6.0 percent in the Industrial Production Index in August which resulted in a downward revision of the Melnick Index published the previous month. Apparently, this decline originates in High Technology industries which declined by about 12.0 percent in August. At the present it is not possible to determine whether this is an unusual one time data that will be corrected later, or a negative turn in manufacturing. As for Revenue in Commerce and Sservices, stability is kept at a high level, reflecting a high level of domestic demand and especially of private consumption.

The components of the September Index include: a decrease of 6.0% in the Industrial Production Index in August, after an increase of 2.4% in July; a decrease of 0.7% in the Index of Revenue in Commerce and Services in August, after an increase of 0.5% in July; an increase of 0.3% in the Imports Index in September, after a decrease of 6.0% in August, and a decrease of 0.2% in the number of employee posts in the business sector in July, after a decrease of 0.2% in June.

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