In 2018 the index rose by 2.3
percent
In contrast to recent years
private consumption does not lead to growth
The
Melnick State of the Israeli Economy Index rose by 2.3 percent in
2018, below the economy's growth potential. In January 2019, the index rose by
0.1 percent. Business sector growth
continues at a moderate rate. The revenue in commerce and services, which
reflects domestic demand and mainly private consumption, declined for two
consecutive months. This development reflects a change in the composition of
domestic demand. It can be determined that unlike in recent years, private
consumption is not leading economic growth. The industrial production index,
which reflects the supply side of the business sector, is unable to increase and
is apparently influenced by the slowdown in Europe, which makes it difficult
for exports. The level of the imports index, which mainly reflects imports of
inputs for domestic production, is high and does not constitute a constraint
for the continued growth of the business sector. The number of employee
positions in the business sector did not change, but the labor market continues
to show resilience.
The January
Melnick Index components include: an increase of 0.2% in the index of industrial
production in December, after a decrease of 0.3% in November; a decrease of
1.1% in the revenue in commerce and services in December, following a decrease
of 0.1% in November; an increase of 1.5% in the imports index in January,
following a decrease of 2.3% in December. and no change in the number of
employee posts in the business sector in November, following an increase of
1.5% in October.
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