The Melnick State of the Economy Index increased by 0.2 percent in August

Business sector growth continues at a moderate rate

There are signs of a decline in the number of employee positions in the business sector

    Click graph to enlarge

The Melnick State of the Israeli Economy Index increased by 0.2 percent in August 2018. The business sector continues to grow at a moderate rate. The revenue in the commerce and services, which reflects domestic demand and especially private consumption, indicates stability with fluctuations without an upward trend, despite the rise in the last month. The industrial production index, which reflects the supply side of the business sector, rose in the last month, but manufacturing apparently did not overcome the difficulties facing the industry. The imports index, which mainly reflects imports of inputs for domestic production, continues to rise, pointing to the possibility of future growth in economic activity. For the first time there are signs of a decline in the number of employee posts in the business sector, but it is early to talk about a turnaround in the labor market.

The August Melnick index components include: an increase of 2.5% in the industrial production Index in July, following an increase of 0.2% in June; an increase of 1.6% in the revenue in commerce and services in July, after a decrease of 2.0% in June; an increase of 1.0% in August, after rising by 2.4% in July, and a 0.6% decrease in the number of employee posts in the business sector in June, following a decrease of 0.1% in May.

    Click table to enlarge

    Click graph to enlarge