Wednesday, April 20, 2016

The Melnick State of the Economy Unchanged in March 2016

Pause of expansion in the business sector
The business sector did not grow in the first quarter of 2016
 Click graph to enlarge

The Melnick State of the Economy unchanged in March 2016. The development of the index reflects pause of expansion in the business sector. The level of activity in the business sector, derived from the index, is similar to that of the last quarter of 2015, meaning the absence of growth in the economy. The level of industrial production index in February 2016, reflecting the supply side of the business sector, is lower than in February 2015. Industrial production is adversely affected by the development of exports, due to the global market conditions and the appreciation of the shekel. The revenue in commerce and services, reflecting mainly domestic demand and private consumption, maintains a high level, but there are signs of lower expansion in private consumption. The imports index, which consists mainly of inputs for domestic production, but also consumer goods, also shows signs of stabilization with strong monthly fluctuations. The number of employee posts in the business sector declined but is still too early to determine weakness in the labor market.

The March index components include: an increase of 0.5% in the index of industrial production in February, after falling 4.0% in January; a 0.6% decline of revenue in commerce and services in February, after rising 0.6% in January; a decrease of 3.8% in the imports index in March, after rising 9.8% in February, and a 1.1% decrease in the number of employee posts in the business sector in January, after rising 0.3% in December. 
Click table to enlarge
Click graph to enlarge

No comments: