The Melnick State of the Economy Index Increased by 0.1 Percent in July

Minor expansion in the business sector

Private consumption is slowing down

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The Melnick State of the Israeli Economy Index increased by 0.1 percent in July 2017. The business sector expanded slightly against the background of moderate growth in the last few months. The commerce and services revenue, which reflects domestic demand and mainly private consumption, indicates stability in recent months and its level is similar to that at the beginning of the year. The economy growth engine of recent years may be moderating. The industrial production index, which reflects the supply side of the business sector, partially corrected the steep decline of the previous month, but, despite the improvement evident in the global markets, the strength of the shekel appears to continue to have a negative impact on its development through its effect on exports of the industrial sector. The import index, which mainly includes imports of inputs for domestic production, shows a moderate trend of expansion. The number of employee posts in the business sector declined over the last two months; however, the level of jobs still reflects a strong labor market.

The July Index components include: an increase of 1.9% in the industrial production Index in June, following a decrease of 3.8% in May; an increase of 1.4% in commerce and services revenue in June, following a decrease of 1.4% in May; an increase of 0.7% in the imports index in July, after a decrease of 2.7% in June, and a decrease of 0.1% in the number of employee posts in the business sector in May, following a decline of 0.2% in April.
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