The Melnick State of the Economy Index increased by 0.1 Percent in October

A slowdown is evident in the activity of the business sector

A slowdown in demand is evident

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The Melnick State of the Israeli Economy Index increased by 0.1 percent in October 2018. The growth of the business sector continues, but there is a slowdown in activity. The revenue in commerce and services, which reflects domestic demand and especially private consumption, indicates stability with fluctuations, without an upward trend, reflecting a slowdown in the demand side of the economy. The index of industrial production, which reflects the supply side of the business sector, fell sharply in the last month, erasing the previous month's gain, reflecting the fact that manufacturing has not overcome the difficulties facing the industry. The index of imports, which mainly reflects imports of domestic production inputs, fell after a series of increases in recent months. And, the number of employee posts in the business sector rose sharply, reflecting the strength of the labor market.

The October Melnick Index components include: a decrease of 3.2% in the industrial production Index in September, following an increase of 3.2% in August; a decrease of 2.5% in revenue in commerce and services in September, following an increase of 0.6% in August; a decrease of 0.5% in the Imports Index in October, after an increase of 0.9% in September; and a 1.0% increase in the number of employee posts in the business sector in August, after rising by 0.1% in July.

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