Wednesday, August 17, 2011

The Melnick State of the Economy Index increased by 0.1% in July 2011

Economic growth rate has decayed.
A decline in the expansion rate of domestic demand and a decline of foreign demand are evident.

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 The Melnick State of the Economy index increased by 0.1 percent in July 2011. Economic growth rate has decayed. The July index as well as updates to the indices of prior months - due to new data released by CBS - point to weakening of the expansion rate of economic activity. The revenue in commerce and services indicates a decline of domestic demand expansion, especially of private consumption. Yet, demand is at a high level. Compared with no increase in industrial production during the first half of 2011, , and a downturn in the last month. This development probably indicates a decrease of foreign demand for exports due to inhibition of activity in the industrial world.

The components of the July Index include: a decrease of 2.9% in the Industrial Production Index in June, after an increase of 2.3% in May; a decrease of 0.5% in the Index of Revenue in Commerce and Services in June, after an increase of 2.2% in May; an increase of 1.1% in the Imports Index in July, after a decrease of 5.6% in June, and an increase of 0.1% in the number of employee posts in the business sector in May, after an increase of 0.2% in April.

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