Business
sector growth continues at a moderate rate
Private
consumption growth leads GDP growth
The Melnick State of the Israeli Economy Index increased by 0.1 percent in August
2016. Growth in the business sector continues at a moderate rate. The high level of revenue in commerce and
services, reflecting mainly domestic demand and private consumption, continues illustrating
to the contribution of private consumption to economic growth. As is known, private consumption has been leading
economic growth in recent years. The industrial production index, which reflects
the supply side of the business sector, is unable to break the deadlock of the
situation it is in. Apparently this
situation will continue as long as the global economic condition does not improve
from the prolonged financial crisis. The imports index, which consists mainly
of import of inputs for domestic production but also consumer goods, is fluctuating
around a given level without a clear trend up or down. The number of employee
posts in the business sector is consistent with the moderate growth of the
economy, there is no evidence of weakness in the labor market.
The August Index components include: a
decrease of 2.9% in the index of industrial production in July, after rising
2.7% in June; A decrease of 0.9% revenue in commerce and services in July,
after rising 1.9% in June; A decrease of 2.9% in the Imports Index in August,
after rising 1.5% in July, and an increase of 0.4% in the number of employee
posts in the business sector in June, after declining 0.6% in May.
Click table to enlarge
Click graph to enlarge
No comments:
Post a Comment