It appears that the growth rate of the business sector is slowing

The import of inputs for domestic local production is declining

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The Melnick State of the Israeli Economy Index rose by 0.1 percent in September 2022. There seems to be a decrease in the growth rate of the business sector: the revenue in commerce and trade, which reflects domestic demand, and especially private consumption, is at a high level but is not increasing. This indicates a lack of growth in private consumption. The industrial production index, which reflects the supply side of the business sector, corrected the decline of the previous month and continues an upward trend. The import index, which consists mainly of inputs for domestic production, fell for three consecutive months and portends pessimism for future economic activity. The increase in the number of employee posts in the business sector has resumed, reflecting strength of the labor market.

The components of the September index include: a 3.8% increase in the industrial production index in August, after a 2.3% decrease in July; a 1.0% decrease in the revenue in commerce and trade after a 0.4% increase in July; a 1.0% decrease in the import index in September, after a 1.1% decrease in August and a 0.2% increase in the number of employee posts in the business sector in July, after a 0.1% decrease in June.

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