Business sector growth
continues
Private consumption appears to
be rising
The Melnick State of the Israeli Economy
Index rose 0.2 percent in January
2020. In 2019, the Index grew by 3%. (This month's index does not reflect the
possible economic effects of the Corona virus.) Business sector growth
continues. Revenue from commerce and services, reflecting domestic demand and
especially private consumption, rose sharply in the last month, correcting the
decline in the previous month, and indicating a rise in private consumption.
The industrial production index, which reflects the supply side of the business
sector, somewhat corrected the previous month's decline, and its high level is
maintained despite slowing activity in Europe and the strengthening of the
shekel. The import index, which mainly reflects imports of inputs for domestic
production, is characterized by volatility around a high level that does not
raise any concern for realizing the potential of the business sector expansion.
The number of employee posts in the business sector corrected, partially, the
sharp decline of the previous month, and it cannot be said that there is a
weakness in the labor market.
The
January Melnick Index components include: a
0.1% rise in the industrial production index in December, after a 1.7% decline
in November; a 3.0% increase in the revenue of commerce and services in
December, after a 0.7% decrease in November; a 1.1% decline in the import index
in January, following a 0.5% rise in December; and a 0.9% increase in the
number of employee posts in the business sector in November, following a 2.2%
drop in October.
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