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

The expansion of the business sector continues at a moderate rate

Private consumption is once again leading economic growth

Click graph to enlarge

 

The Melnick State of the Israeli Economy Index increased by 0.1 percent in September 2017. The business sector continues to expand at a moderate rate. The rise in revenue of commerce and services, which reflects domestic demand and mainly private consumption, indicates renewed growth. Private consumption returns to lead economic growth, following a moderation in the first half of the year. The industrial production index, which reflects the supply side of the business sector, continues to decline despite the apparent improvement in world markets; it appears that the strength of the shekel continues to have a negative effect on its development through its effect on exports of the industrial sector. The decline in industrial production constitutes a constraint on the ability of the economy to exploit its growth potential. The import index, which mainly includes imports of inputs for domestic production, continues to expand at a rate that will enable accelerated growth at the end of the year. The number of employee posts in the business sector increased at a rate similar to the decline in the previous month, reflecting the strength of the labor force.

The September index components include a 0.4% drop in the industrial production Index in August, following a 2.5% drop in July; an increase of 0.7% in commerce services revenue in August, following an increase of 0.9% in July; an increase of 0.5% in the imports index in September, following an increase of 0.4% in August, and a 0.2% increase in the number of employee posts in the business sector in July, following a decrease of 0.2% in June.

Click table to enlarge

Click graph to enlarge