Stagnation in the business sector
Domestic demand supports business sector activity
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The Melnick State of the Economy did not
change in August 2015. The development of the Index reflects stagnation in the
business sector. In fact from April 2015 the level of the Index is stable, reflecting
the absence of economic growth. The industrial production index, which reflects
the supply side of the business sector fell, reflecting the difficulties of the
economy in exports since industrial production constitute the bulk of goods exports,
which continues to be affected by the weakness of economic activity in Europe,
the decline in growth in China and probably the strength of the Shekel. The revenue
index in commerce and services, reflecting mainly domestic demand and private
consumption dropped, but it remains high and continues to support business
sector activity. The imports index, which consists mainly of imports of inputs
for domestic production and also consumer goods, rose and may indicate improvement
in business sector activity in the following months. The number of employee
posts in the business sector fell after rising in the previous month.
The August Index components include: a
decrease of 3.4% in the index of industrial production in July, following an
increase of 3.7% in June; a decrease of 0.6% in revenue in commerce and services
in July, after rising 1.7% in June; an increase of 3.2% in the imports index in
August, after falling 0.5% in July, and a decrease of 0.1% in the number of
employee posts in the business sector in June, after rising 0.2% in May.
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