The Melnick State of the Economy Index increased by 0.2 percent in January

Business sector growth continued at the beginning of 2018

In January, there was an exceptional drop in imports of inputs for domestic production

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The Melnick State of the Israeli Economy Index increased by 0.2 percent in January 2018. At the beginning of the year, business sector growth continued. The revenue in commerce and services, which reflects domestic demand and especially private consumption, continues to indicate an increase in private consumption and its contribution to economic growth, despite its slight last month decline. The index of industrial production, which reflects the supply side of the business sector, continues to reflect the difficulties faced by industry. The strengthening of the shekel makes it difficult for industrial exports on the one hand, and increases imports competition on the other. The imports index fell sharply in January, mainly due to a drop in imports of inputs for domestic production. At this stage, it cannot be determined that this constitutes a change in the imports of inputs and it appears to be an exceptional one-time event. The number of employee posts in the business sector continues to reflect strength in the labor market.

The January Index components include: a 0.5% drop in the index of industrial production in December, following a rise of 2.0% in November; a decrease of 0.4% in revenue of commerce and services in December, following an increase of 0.9% in November; a decrease of 12.8% in the index of imports in January, after an increase of 3.0% in December, and a 0.2% increase in the number of employee posts in the business sector in November, following a decrease of 0.5% in October.
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