The Melnick State of the Economy Index Rose by 0.5 Percent in January

Improvement in the rate of growth of the business sector

Growth is led by private consumption

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The Melnick State of the Economy Index increased by 0.5 percent in January 2015.  A major data revision of the CBS shows now an improvement of the rate of growth of the business sector.  In the last quarter of 2014 the Melnick Index rose by one percent (4 percent at annual rate).  In summary in 2014 the index increased by 2.1 percent, compared to 1.4 percent in 2013.

The revenue in the commerce and services, which reflects domestic demand, especially private consumption, continues to lead the increase in the index, it seems that private consumption is leading the growth of the economy.  The industrial production index shows stability at high level, and seems to be continued affected by the weakness in global activity, particularly in Europe.  The imports Index, which consists mainly of imports of inputs for domestic production but also of consumer goods, showed a sharp fluctuation, an abnormal increase in December and a partial correction down in January.  The number of employee posts in the business sector positive trend reflects the growth of the economy and the demand for labor.

The January index components include: a decrease of 0.1% in the index of industrial production in December, after rising 0.6% in November; An increase of 1.4% of revenue in commerce and services in December, after falling 0.2% in November; A decrease of 8.3% in the imports index in January, following an increase of 11.9% in December, and an increase of 0.4% in the number of employee posts in the business sector in November, after falling 0.3% in October

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