Sunday, April 30, 2017

The Melnick State of the Economy Index increased by 0.1 percent in March

Growth in the business sector continues
The rate of growth appears to be more moderate than at the end of 2016


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The Melnick State of the Israeli Economy Index increased by 0.1 percent in March 2017. Business sector growth continues, albeit at a more moderate rate than at the end of 2016 and the beginning of 2017. The revenue in commerce and services, which reflects domestic demand and especially private consumption, shows, perhaps temporarily, a stop in the growth that has characterized it in recent years, (this figure is a temporary estimate because the revenue of all industries has not yet been published). The index of industrial production, which reflects the supply side of the business sector, declined. Despite the previous positive signs, which we reported, it appears that the apparent improvement in Western economies still does not allow for the expansion of industrial exports. The index of imports, which mainly includes imports of inputs for domestic production but also consumption goods returned to show fluctuations around a positive trend. The rise in the number of employee posts in the business sector reflects strength in the labor market.


The March index components include: a 2.3% drop in the industrial production index in February, following a decrease of 0.8% in January; a decrease of 0.9% in revenue in commerce and services in February, following an increase of 1.1% in January; a decrease of 0.9% in the imports index in March, after an increase of 2.2% in February, and a 0.4% increase in the number of employee jobs in the business sector in January, following a decrease of 0.3% in December.

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