Business sector growth
continues at a moderate rate
Private consumption has
stopped leading economic growth
The
Melnick State of the Israeli Economy Index increased by 0.1 percent
in December 2018. The growth of the business sector continues at a moderate
rate. The revenue in commerce and services, which reflects domestic demand and
especially private consumption, maintains a relatively stable level. This
development reflects the stability of domestic demand and especially private
consumption. It should be noted that unlike in recent years, the impact of
private consumption on economic growth has diminished. The index of industrial production,
which reflects the supply side of the business sector, declined in the last
month. Apparently, industrial production was affected by the slowdown in global
markets, which is making it difficult for exports to develop. The import index,
which reflects mainly the import of inputs for domestic production, also
declined, but its level is still high and does not constitute a constraint on
the continued growth of the business sector. The number of employee posts in
the business sector increased reflecting resilience in the labor market.
The December
Melnick index components include: a 2.6% decrease in the industrial production index
in November, following an increase of 0.2% in October; a decrease of 0.2% in
revenue in commerce and services in November, following an increase of 2.3% in
October; a decrease of 2.4% in the imports index in December, following an
increase of 5.7% in November; and, an increase of 1.4% in the number of
employee posts in the business sector in October, following a decrease of 0.6%
in September.
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