Slowdown in economic growth
There has been a decline in the expansion rate of domestic demand as well as a decline in foreign demand.
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The Melnick State of the Economy Index rose by 0.1 percent in August 2011. A slowdown in economic growth is apparent. The decline of revenue in commerce and services reflects a decrease in domestic demand expansion rate and especially in private consumption; indeed, the level of domestic demand is still high, yet its expansion is coming to a halt. In addition, there has been no increase in the level of industrial production during the first half of 2011, and industrial production level is similar to that of early 2011. This development probably indicates a decrease of foreign demand for exports due to inhibition of activity in the industrial world.
The components of the August Index include: an increase of 1.8% in the Industrial Production Index in July, after a decrease of 2.6% in June; a decrease of 0.4% in the Index of Revenue in Commerce and Services in July, after a decrease of 0.4% in June; an increase of 1.0% in the Imports Index in August, after an increase of 1.1% in July, and a decrease of 0.1% in the number of employee posts in the business sector in June, after an increase of 0.1% in May.
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