The Melnick State of the Economy Index increased by 0.3 percent in February

Business sector growth continues

Private consumption continues to lead growth

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The Melnick State of the Israeli Economy Index increased by 0.3 percent in February 2017. The accelerated business sector growth, which began at the end of 2016 and the beginning of 2017, continues. The rise in revenue in commerce and services, which reflects domestic demand and especially private consumption, continues to point out that economic growth has been led, in recent years, by private consumption. Industrial production, which reflects the supply side of the business sector, did not change from the previous month, but its relatively high level was maintained. It appears that the apparent improvement in Western economies will allow the expansion of industrial exports, after years of stagnation due to the global financial crisis of the past decade. The imports index, which mainly includes imports of inputs for domestic production but also consumption products, rose again, and the trend appears to be positive. The level of employee posts in the business sector remained high due to its rise in recent months; this trend reflects strength in the labor market.

The February index components include: no change in the index of industrial production in January, following an increase of 0.4% in December; an increase of 0.8% in the revenue in commerce and services in January, following a decrease of 0.2% in December; an increase of 2.5% in the imports index in February, after a decrease of 7.7% in January, and a decrease of 0.2% in the number of employee posts in the business sector in December, following an increase of 1.9% in November.

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  Click table to enlarge