Economic growth continues, albeit more slowly, relative to
the third quarter of 2016
Industrial production continues to decline due to export
demand deficiency
The Melnick
State of the Israeli Economy Index increased by 0.1 percent in November 2016. The business
sector growth continues, albeit at a slower pace, after its visible improvement
in the third quarter of 2016. The revenue index of commerce and services,
reflecting mainly domestic demand and private consumption, fell sharply in
October, but still cannot express a turnaround in domestic demand, in
particular in private consumption - which is the main source economic growth in
recent years. Industrial production, which reflects the supply side of the
business sector, dropped two months in a row, probably because of the strength
of the shekel and the global economic situation, which limit the development of
exports. The imports index, which consists mainly of imports of inputs for
domestic production, but also consumer goods, dropped two month in a row,
reflecting a decline in economic expansion. The steep rise in the number of
employee posts in the business sector reflects strength in the labor market.
The November
Index components include: a decrease of 1.8% in the index of industrial
production in October, after falling 2.4% in September; a decrease of 2.7% revenue
in commerce and services in October, after rising 0.3% in September; a 0.6% decrease
in imports in November, after falling 0.3% in October, and an increase of 1.8%
in the number of employee posts in the business sector in September, after
falling 0.2% in August.
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