Growth in the business sector is expected to accelerate in the second quarter
A sharp rise in private consumption
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The Melnick State of the Israeli Economy Index rose by 0.5 percent in May 2021. The rise in the Index reflects a continued and rapid increase in the economic activity of the business sector. There is an apparent acceleration in the growth of the business sector in the second quarter of 2021. The increase in revenue in commerce and services, which reflects domestic demand, and especially private consumption, reflects a trend of a rapid return to the level of private consumption before Corona and beyond. In the last three months, revenue in commerce and services has risen by about 7.6 percent. The increase of the industrial production index has been halted, but the import index, which consists mainly of inputs to domestic production, continues to climb – a development that reflects optimism in the business sector. The increase in employee posts in the business sector reflects improvement in economic activity and a decline in the unemployment rate.
The components of the May Index include: a decrease of 1.2% in the industrial production index in April, after an increase of 3.1% in March; a 2.9% increase in revenue in commerce and services in April after a 3.4% increase in March; an increase of 2.7% in the import index in May, after an increase of 0.4% in April and an increase of 4.3% in the number of employee posts in the business sector in March, after an increase of 4.6% in February.
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