The business sector expansion continues
Imports of inputs to domestic production reflect optimism for continued growth
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The Melnick State of the Israeli Economy Index rose by 0.4 percent in January 2022. The expansion of the business sector continues. The Omicron eruption does not appear to have had a significant impact on economic activity. The increase in revenue in commerce and services, which reflects domestic demand, and especially private consumption, has moderated but continues to contribute to the expansion of the business sector. The industrial production index, which reflects the supply side of the business sector, continues to be updated backward every month by the CBS, and suffers from sharp fluctuations. The import index, which consists mainly of inputs to domestic production, has risen sharply; this is a development that reflects optimism for continued economic growth. The pace of the increase in the number of employee posts in the business sector continues, evidence of strength in the labor market and a decline in the unemployment rate.
The components of the January index include: a 5.9% increase in the industrial production index in December, after a decrease of 4.1% in November; a decrease of 2.6% in revenue in commerce and services in December, after an increase of 0.7% in November; a 6.6% increase in the import index in January, after a decrease of 0.7% in December; and a 1.1% increase in the number of employee posts in the business sector in November, after an increase of 2.3% in October.
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