Saturday, September 26, 2015

The Melnick State of the Economy Unchanged in August

 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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