The Melnick State of the Economy Index increased by 0.3 percent in December

Economic growth continues

Steep increases were recorded in industrial production and in revenue in commerce and services

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The Melnick State of the Israeli Economy Index increased by 0.3 percent in December 2016. Growth in the business sector continues. The revenue in commerce and services, reflecting domestic demand and mainly private consumption, rose sharply at a rate greater that its decline in the previous months. Domestic demand, especially private consumption, continues to be the major factor in the growth of the economy. Industrial production, that reflects the supply side of the business sector, also rose sharply but, it is unable to break its deadlock, probably because of the strength of the shekel and the global economic situation, which limits the development of exports. The rise in the imports index, which includes imports of inputs for domestic production but also consumer goods, more than compensated for the decline in recent months. Despite the decline in the number of employee posts in the business sector its trend reflects strength in the labor market.

The December index components include: an increase of 3.3% in the index of industrial production in November, after falling 1.5% in October; an increase of 3.2% in revenue in commerce and services in November, after falling 2.6% in October; an increase of 7.2% in the imports index in December, after falling 1.2% in November, and a decrease of 2.9% in the number of employee posts in the business sector in October, after a 1.7% increase in September. 

  

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