The Melnick State of the Economy Index increased by 0.1 percent in April

The business sector returned to moderate growth

The moderate recovery led by growth in industrial production

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The Melnick State of the Economy Index increased by 0.1 percent in April 2016. The April index marks a return to business sector growth at a moderate rate. The industrial production index, which reflects the supply side of the business sector, increased by 3 percent in March and led the moderate recovery in activity (this figure also improved the level of the index of February).  The revenue in commerce and services, reflecting domestic demand and mainly private consumption, rose. Domestic demand seems to continue to support economic growth. The imports Index, which consists mainly of imports of inputs for domestic production, but also consumer goods, declined and it may indicate a decline in growth later in the second quarter. The number of employee posts in the business sector rose moderately without offsetting the sharp decline of the previous month.

The April index components include: an increase of 3.0% in the index of industrial production in March, after rising 0.3% in February; An increase of 1.6% in revenue in commerce and services in March, following no change in February; A decrease of 1.3% in the Imports Index in April, after falling 4.6% in March and 0.1% increase in the number of employee posts in the business sector in February, after falling 0.8% in January. 

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