A slowdown in the business sector activity is evident
The import index indicates pessimism regarding the continuation of economic activity
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The Melnick State of the Israeli Economy Index did not change in November 2022. A slowdown in the activity of the business sector is evident; the slowdown has not yet been reflected in the labor market. The revenue in commerce and services, which reflects domestic demand and especially private consumption, has risen again, and it seems that private consumption is correcting the weakness that was evident during the previous months. The industrial production index, which reflects the supply side of the business sector, dropped sharply, due apparently to the weakness of production in elite technology sectors. At this stage, it is not possible to determine whether this is a one-time event or the beginning of a trend. The import index, which consists mainly of inputs for domestic production, has returned to a decline, which appears to be a trend that reflects pessimism about the continued growth of the economy. The number of employee posts in the business sector continues to rise, so the signs of a slowdown are not reflected in the labor market.
The components of the November index include: a 5.2% decrease in the industrial production index in October, after a 0.1% decrease in September; a 1.2% increase in the revenue in commerce and services in October after a 1.7% increase in September; a 1.1% decrease in the import index in November, after a 0.7% increase in October and a 0.9% increase in the number of employee posts in the business sector in September, after a 0.1% increase in August.
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