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The Melnick State of the Israeli Economy Index rose by 0.2% in June 2025, reflecting an increase in business sector activity.
The business sector continues to grow at a moderate rate. The revenue in economic branches, which represents domestic demand and primarily private consumption, is stable, which means a slowdown in private consumption. There is some recovery in industrial activity, as evident in the increase in the industrial production index, which represents the supply side of the business sector.
The import index, which primarily consists of inputs for domestic production, fell sharply, apparently reflecting the economic closure during the war with Iran. The number of employee posts in the business sector is stable, which probably reflects supply constraints in the labor market.
June Index Components:
• Industrial Production Index: Up 7.3% in May, after a 0.5% increase in April.
• Revenue in economic branches: Up 0.6% in May, after a 0.4% decrease in April.
• Import Index: Down 8.6% in June, after a 6.0% decrease in May.
• Number of employee posts in the business sector: Down 1.1% in April, after a 1.1% increase in March.

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