Wednesday, November 30, 2016

The Melnick State of the Economy Index increased by 0.2 Percent in October

Economic growth continues at the beginning of the fourth quarter of 2016
At this time, private consumption continues to be the engine of economic growth
  Click graph to enlarge

The Melnick State of the Israeli Economy Index increased by 0.2 percent in October 2016. Growth in the business sector, at the beginning of the fourth quarter of 2016, continues after its improvement in the third quarter. The revenue in commerce and services, reflecting mainly domestic demand and private consumption, continues to rise. Despite the decline in private consumption growth it continues to be a major factor in the growth of the economy. Industrial production, which reflects the supply side of the business sector does not rises likely due to the global economic situation, which is a limitation to the development of exports. The imports index, which consists mainly of imports of inputs for domestic production but also consumer goods, continues to oscillate around a given level, with no clear upward or downward trend. The high level of employee posts in the business sector is consistent with the improvement in the economy.


The October Index components include: a decrease of 1.2% in the index of industrial production in September, after rising 3.3% in August; a decline of 0.8% in revenue in commerce and services in September, after rising 0.2% in August; a decrease of 0.8% in the Imports Index in October, after rising 1.6% in September, and a 0.1% decrease in the number of employee posts in the business sector in August, after rising 0.5% in July.
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