Wednesday, January 31, 2018

The Melnick State of the Economy Index Increased by 0.3 percent in December

An improvement was evident in the growth of the business sector
Imports of inputs for domestic production continued
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The Melnick State of the Israeli Economy Index increased by 0.3 percent in December 2017. The growth rate of the business sector, which is leading the economy's growth, improved during the last months of 2017. The commerce and services revenue, which reflects domestic demand and especially private consumption, continues to expand, pointing to an increase in private consumption and its contribution to economic growth. Despite the rise in the index of industrial production, which reflects the supply side of the business sector, its level continues to reflect the difficulties facing industry. The strengthening of the shekel makes it difficult for industrial exports on the one hand, and increases import competition on the other hand. The imports index continues to expand at a rapid rate, reflecting mainly the increase in imports of inputs for domestic production, signaling optimism for continued economic growth. The number of employee posts in the business sector continues to reflect its strength in the labor market.

The December Index components include: an increase of 1.8% in the index of industrial production in November, following a decrease of 1.0% in October; an increase of 1.3% in revenue in commerce and services in November, following an increase of 1.9% in October; the imports index rose by 1.6% in December, following an increase of 3.9% in November; a decrease of 0.4% in the number of employee posts in the business sector in October, following an increase of 0.7% in September.
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