The Melnick State of the Economy Index Increased by 0.3 Percent in July

 Business-sector growth continues at a moderate rate

Private consumption continues to lead the growth in GDP

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The Melnick State of the Israeli Economy Index increased by 0.3 percent in July 2016. The Central Bureau of Statistics updated the data for the past few months which shows that contrary to the picture of an apparent slowdown prior to the update, the growth of the business sector actually continues at a moderate rate. The revenue in commerce and services, reflecting domestic demand - and mainly private consumption, continues to rise, signaling the growth in private consumption that, as we know, is the leading component of economic growth in recent years.  The industrial production index, which reflects the supply side of the business sector, rose and compensated for declines in previous months, but still does not deviate from the stagnation in which it dwells. The imports index, which consists mainly of imports of inputs for domestic production, but also consumer goods, rose and erased the decline in the previous month.  The number of employee posts in the business sector declined but there are no signs of weakness in the labor market.

The July Index components include: an increase of 1.9% in the index of industrial production in June, after declining 0.1% in May; a 2.0% rise in revenue in commerce and services in June, after declining 0.6% in May; An increase of 1.6% in the Imports Index in July, after falling 2.2% in June, and a decrease of 0.5% in the number of employee posts in the business sector in May, after rising 0.5% in April.

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