Monday, July 27, 2015

The Melnick State of the Economy Index decreased by 0.2 percent in June

There are signs of braking in economic growth
It seem that domestic demand has stabilized

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The Melnick State of the Economy Index decreased by 0.2 percent in June 2105.  The Index signals a braking in the economy's growth rate. The industrial production index, which reflects the supply side of the business sector, fell after a sharp decline recorded in the previous month. Industrial production, which is an important source of the economy's exports, continues to be affected by the weakness of economic activity in Europe and probably by strength of the shekel.  The revenues in commerce and services, reflecting domestic demand and particularly private consumption, fell after a long period of stability at a high level. The imports index, which consists mainly of imports of inputs for domestic production but also consumer goods, rose and corrected a drop of a few months. The number of employee posts in the business sector fell following an upward trend.


The June Index components include: a decrease of 1.4% in the index of industrial production in May, after falling 4.9% in April; a decrease of 0.7% Revenue in commerce and services in May, after rising 0.3% in April; an increase of 5.2% in the Imports Index in June, after declining 2.6% in May; and a decrease of 0.3% in the number of employee posts in the business sector in April, after rising 0.3% in March.

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