The expansion of the business
sector reflects economic growth
Import of inputs for domestic
production and consumption goods continues
The
Melnick State of the Israeli Economy Index increased by 0.2 percent
in November 2017. The expansion of the business sector continues and reflects
the continued economic growth. The commerce and services revenue, which
reflects domestic demand and especially private consumption, returned to rise,
a trend that has characterized it in recent years, and points to the
contribution of private consumption to economic growth. The level of the index
of industrial production, which reflects the supply side of the business
sector, continues to expose the difficulties faced by the industrial sector.
The strengthening of the shekel makes it difficult for industrial exports on
the one hand, and increases imports competition on the other hand. In the short
term, these two factors harm the ability of the economy to exploit its growth
potential. The imports index continues to expand at a rapid rate, reflecting
mainly an increase in imports of inputs for domestic production, but also an
increase in imports of consumption goods. The number of employee posts in the
business sector returned to rise reflecting strength in the labor market.
The November
index components include: a decrease of 1.5% in the industrial production Index
in October, following an increase of 1.1% in September; an increase of 1.1% in
the revenue in commerce and services in October, following a decrease of 1.8%
in September; an increase of 3.9% in the imports index in November, after an
increase of 1.0% in October, and an increase of 0.8% in the number of employee
posts in the business sector in September, following a decrease of 0.3% in
August.
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