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 increased by 0.1 percent in December 2022. A slowdown in the business sector is evident. In 2022, the Index increased by 6.9 percent, a development that reflects rapid growth of the business sector. However, most of the economic growth occurred in the first half of the year, whilst from July 2022 a slowdown is evident. The revenue index in commerce and services, which reflects domestic demand and especially private consumption, maintains its high level but does not increase, which indicates the weakness of private consumption. The industrial production index, which reflects the supply side of the business sector, partially corrected the sharp decline of the previous month, but its level is still relatively low compared to previous months. The import index, which consists mainly of inputs for domestic production, has fallen again, a development that indicates pessimism regarding the continuation of economic activity. The number of employee posts in the business sector decreased after a long-term continuous increase. It is possible that the weakness of activity is beginning to manifest itself in the labor market.

The components of the December index include: a 3.9% increase in the industrial production index in November, after a 5.4% decrease in October; a 1.3% decrease in revenue in commerce and services in November after a 1.1% increase in October; a 1.1% decrease in the import index in December, after a 0.9% decrease in November and a 1.2% decrease in the number of employee posts the business sector in October, after a 0.9% increase in September.

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