The slowdown in business sector activity continues.
The economic slowdown is also reflected in the labor market.
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The Melnick State of the Israeli Economy Index increased by 0.1 percent in June 2023. The slowdown in the economic activity of the business sector continues. As stated in previous announcements, the slowdown results from a combination of the slowdown in economic activity in the world and the effect of the attempt to radically change the legal system in Israel. The revenue in commerce and services, which reflects domestic demand and especially private consumption, expresses fluctuations in private consumption with no upward trend detected. The industrial production index, which reflects the supply side of the business sector, also expresses fluctuations in the industry’s activity without a trend of expansion; it expresses weakness on the supply side. The import index, which consists mainly of inputs for domestic production, has returned to a decrease, after prior decreases that began in October 2022. The number of employee posts in the business sector has decreased again, and it seems that the economic slowdown is also reflected in the labor market.
Please note: the index model has been updated. Therefore, beyond the monthly backward changes that result from data updates by the CBS, there are changes because of the model update. It is important to note that the economic picture after the update has not changed.
The components of the June Index include: a 0.8% decrease in the industrial production index in May, after a 0.7% increase in April; an increase of 0.8% in revenue in commerce and services in May after a decrease of 1.1% in April; a 3.4% decrease in the import index in June, after a 0.2% increase in May; and a 0.6% decrease in the number of employee posts in the business sector in April, after a 0.3% decrease in March.
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