Improvement in revenue in commerce and services mainly reflects an improvement in private consumption.
The high level of the import index indicates optimism for the growth of activity in 2021.
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The Melnick State of the Israeli Economy Index rose by 0.1 percent in February 2021. The rise in the Index reflects a continued improvement in the business sector activity on the backdrop of the effect of the successful vaccination of the population. There is a marked improvement in the revenue in commerce and services, which reflects domestic demand, and especially private consumption, on the backdrop of the sharp decline in private consumption during the past year. Despite the decline of the import index, which consists mainly of inputs to domestic production, its high level indicates some optimism for economic activity growth in 2021. The increase in employee posts in the business sector in the last two months reflects the partial return to work after the decline in employment in the second quarantine month.
The components of the February Index include: a decrease of 0.5% in the industrial production index in January, after an increase of 0.5% in December; a 1.1% increase in revenue from commerce and services in January after a 0.5% increase in December; a 0.8% decline in the imports index in February, after a 0.4% rise in January and a 2.6% rise in the number of employee posts in the business sector in December, after a 4.7% rise in November.
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