The Melnick State of the Economy Index increased by 0.2 percent in July

Economic activity stabilizes after signs of decline

Domestic demand continues to support growth

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The Melnick State of the Economy Index increased by 0.2 percent in July 2015. The rise in the index indicates stabilization of the economic activity level. The industrial production index, which reflects the supply side of the business sector, rose and corrected the declines of previous months. Industrial production, which constitutes the bulk of the exports of goods in the economy, continues to be affected by the weakness of economic activity in Europe and probably by the strong shekel. The revenues in commerce and services, reflecting domestic demand, and particularly private consumption, rose, and continues to support economic growth. The imports index, which consists mainly of imports of inputs for domestic production but also consumer goods, declined after the sharp ascent of the previous month. And the number of employee posts in the business sector partially corrected the decline in the previous month.

The July Index components include: an increase of 3.7% in the index of industrial production in June, after declining 1.1% in May; an increase of 1.4% in revenue in commerce and services in June, after declining 0.3% in May; a decrease of 0.8% in the Imports Index in July, after rising 5.5% in June, and an increase of 0.2% in the number of employee posts in the business sector in May, after falling 0.5% in April.
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