Business sector growth continues
The increase in revenue from commerce and services was halted
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The Melnick State of the Israeli Economy Index rose by 0.2 percent in June 2021. The Index rise reflects a continued improvement in economic activity of the business sector. The growth of the business sector seems to be more moderate at the end of the second quarter of 2021. The increase in revenue from commerce and services – which reflects domestic demand and especially private consumption, was halted after a sharp increase in the previous three months. The industrial production index, which reflects the supply side of the business sector, has fallen for two months in a row, possibly reflecting a decline in industrial profitability against the background of the strengthening of the shekel. The import index, which consists mainly of inputs to domestic production, continues to climb – a development that expresses continued optimism in the business sector. The increase in employee posts in the business sector continues, this increase reflects an improvement in economic activity and a decrease in the unemployment rate.
The components of the June Index include: a decrease of 1.7% in the industrial production index in May, after a decrease of 1.1% in April; a 3.1% decrease in revenue from commerce and services in May after a 3.2% increase in April; an increase of 4.9% in the import index in June, after an increase of 2.5% in May and a 2.2% increase in the number of employee posts in the business sector in April, after an increase of 4.4% in March.
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