Wednesday, December 28, 2016

The Melnick State of the Economy Index Increased by 0.1 percent in November

Economic growth continues, albeit more slowly, relative to the third quarter of 2016
Industrial production continues to decline due to export demand deficiency

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The Melnick State of the Israeli Economy Index increased by 0.1 percent in November 2016. The business sector growth continues, albeit at a slower pace, after its visible improvement in the third quarter of 2016. The revenue index of commerce and services, reflecting mainly domestic demand and private consumption, fell sharply in October, but still cannot express a turnaround in domestic demand, in particular in private consumption - which is the main source economic growth in recent years. Industrial production, which reflects the supply side of the business sector, dropped two months in a row, probably because of the strength of the shekel and the global economic situation, which limit the development of exports. The imports index, which consists mainly of imports of inputs for domestic production, but also consumer goods, dropped two month in a row, reflecting a decline in economic expansion. The steep rise in the number of employee posts in the business sector reflects strength in the labor market.

The November Index components include: a decrease of 1.8% in the index of industrial production in October, after falling 2.4% in September; a decrease of 2.7% revenue in commerce and services in October, after rising 0.3% in September; a 0.6% decrease in imports in November, after falling 0.3% in October, and an increase of 1.8% in the number of employee posts in the business sector in September, after falling 0.2% in August.

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