The business sector is growing at a rapid pace
Private consumption continues to lead the economic expansion
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The Melnick State of the Israeli Economy Index rose by 0.7 percent in November 2021. Growth of the business sector continues at a rapid pace. The level of revenue in commerce and services – which reflects domestic demand, and especially private consumption – is expanding at a high rate and is leading the growth of the entire economy. The industrial production Index – reflecting the supply side of the business sector, was updated-upwards by the CBS, so that the updated picture is of the continued rise of the index and hence also changed the assessment of the previous month, of a certain slowdown in the rate of economic growth. The imports index, which consists mainly of inputs for domestic production, has risen again, and continues to signal optimism for future growth. The increase in the number of employee posts in the business sector has been paused slightly, but this does not change the assessment of improvement in the labor market and a decline in the unemployment rate.
The components of the November index include: a 0.7% increase in the industrial production index in October, after a 1.5% increase in September; a 0.7% increase in revenue from commerce and services in October after a 1.0% increase in September; an increase of 2.3% in the import index in November, after a decrease of 1.5% in October and a decrease of 0.6% in the number of employee posts in the business sector in September, after an increase of 1.0% in August.
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