There are signs of improvement in the growth of the business sector in early 2019
The improvement in the Index in March is still affected by an update of the industrial production data published by the Central Bureau of Statistics
The Melnick State of the Israeli Economy Index increased by 0.4 percent in March 2019. Business sector growth continues, and there are signs of GDP growth acceleration in the beginning of 2019. The improvement in growth data continues to be affected by a significant revision of the industrial production data conducted by the Central Bureau of Statistics. The revenue in commerce and services, which reflects domestic demand, and especially private consumption, continues to rise; this development reflects an improvement in domestic demand. The index of industrial production, which reflects the supply side of the business sector, rose again at an exceptional rate of 3.2 percent in February, following an exceptional rise of 4.9 percent in January. This increase appears to reflect, as stated, mainly updating historical data by the Central Bureau of Statistics, and at this stage it is difficult to give it an economic meaning. The imports index, which reflects mainly, imports of inputs for domestic production, declined, but its level indicates the possibility of continued growth in the business sector. The number of employee positions in the business sector declined in the last month, but it is too early to interpret the decline as a turning point in the labor market.
The March Melnick Index components include: an increase of 3.2% in the index of industrial production in February, following an increase of 4.9% in January; a rise of 0.5% in revenue in commerce and services in February, following an increase of 1.3% in January; a decrease of 1.3% in the import index in March, following an increase of 2.7% in February; and a decrease of 0.2% in the number of employee posts in the business sector in January, following a decline of 0.2% in December.
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The March Melnick Index components include: an increase of 3.2% in the index of industrial production in February, following an increase of 4.9% in January; a rise of 0.5% in revenue in commerce and services in February, following an increase of 1.3% in January; a decrease of 1.3% in the import index in March, following an increase of 2.7% in February; and a decrease of 0.2% in the number of employee posts in the business sector in January, following a decline of 0.2% in December.
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