The Melnick State of the Economy Index increased by 0.2% in January 2011

Expansion of economic activity continues.

Domestic demand continues to lead the economic activity.

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The Melnick State of the Economy Index increased by 0.2% in January 2011. The expansion in economic activity continues. The Index's increase in January was influenced mainly by a high level of revenues in Commerce and Services which reflects on a high level of domestic demand - especially of private consumption. In addition, a continuous rise in the index of imports is evident. This index consists mainly of imports of inputs for local production, as well as import of consumption goods. The Industrial Production Index declined in December, this decline may reflect on difficulties in the economy's exports.

The components of the January Index include: a decrease of 0.5% in the Industrial Production Index in December, after an increase of 0.3% in November; a decrease of 0.6% in the Index of Revenue in Commerce and Services in December, after an increase of 0.2% in November; an increase of 3.9% in the Imports Index in January, after an increase of 5.6% in December, and a decrease of 0.1% in the number of employee posts in the business sector in November, after an increase of 0.7% in October.

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