Unusual
upward correction to the level of the industrial production index
The rise in revenue of commerce and services
supports economic growth
The Melnick State of the Economy did not change in December 2015. The stability
of the Index, against the backdrop of a sharp correction in the index of
industrial production, reveals improvement in the business sector. The
industrial production index, which reflects the supply side of the business
sector, rose abnormally by 7.2 percent. It seems that the boom does not reflect
an actual dramatic change in manufacturing industries but a correction in the level
of the series, as measured by the CBS. The revenue in commerce and services,
reflecting the domestic demand, especially private consumption, continues to
rise, and illustrates the rise in private consumption and its impact on economic
growth. The imports index, which consists mainly of imports of inputs for
domestic production, but also consumer goods, increased, and continues to
develop with strong volatility. The number of employee posts in the business
sector rose after several months of stability.
The December Index components include:
an abnormal increase of 7.2% in industrial production index in November, after
falling 2.3% in October; an increase of 0.7% of revenue in commerce and services
in November, after rising 0.7% in October; an increase of 5.0% in the Imports
Index in December, after falling 3.3% in November; and an increase of 0.4% in
the number of employee posts in the business sector in October, after falling
0.2% in September.
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