The Melnick State of the Economy Index Rose 0.1 Percent in September

Business sector growth continues at a moderate rate

Labor market strength continues

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The Melnick State of the Israeli Economy Index rose 0.1 percent in September 2019. Business sector growth continues at a moderate pace. The revenue in commerce and services, reflecting domestic demand, and especially private consumption, declined in the last month, however, it does not reflect a turnaround in the growth of private consumption. The industrial production index, which reflects the supply side of the business sector, maintained to some extent the surge in the previous month, however, it is early to see this development as a return to the growth of the industry. The import index, which reflects mainly imports of inputs for domestic production, maintains a more or less stable level over the past year. This trend may reflect a possible slowdown in future economic activity. The number of employee posts in the business sector has risen and continues to reflect strength in the labor market.

 The September Melnick index components include: a 1.4% decline in the industrial production Index in August, following a 5.5% rise in July; a decrease of 4.3% in revenue of commerce and services in August, after a 0.9% increase in July; an increase of 4.2% in the import index in September, after a decrease of 0.3% in August; and a 0.5% increase in the number of employee posts in the business sector in July, after no change in June.

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