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

Business sector expansion continues

Private consumption continues to lead economic growth

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The Melnick State of the Israeli Economy Index increased by 0.1 percent in June 2018. The expansion of the business sector continues. The level of revenue in commerce and services which reflects domestic demand and mainly private consumption, continues to point to the contribution of private consumption to economic growth. The index of industrial production, which reflects the supply side of the business sector, does not succeed in attaining a continued expansion path. Industrial production apparently indicates that manufacturing has not overcome the difficulties faced by industry. The level of imports index, which mainly reflects imports of domestic production inputs, is high despite its decline in the last month. The number of employee posts in the business sector continues to reflect the strength of the labor market.

The June Melnick Index components include: a 2.8% drop in the industrial production Index in May, following an increase of 1.7% in April; an increase of 2.6% in revenue of commerce and services in May, following a decrease of 2.8% in April; a decrease of 1.7% in the imports index in June, following an increase of 1.9% in May, and a decrease of 0.1% in the number of employee posts in the business sector in April, following a decrease of 0.2% in March.

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