The expansion of the business sector continues

Preliminary signs that the growth rate may be moderating

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The Melnick State of the Israeli Economy Index rose by 0.3 percent in April 2022. The expansion of the business sector continues, although there are initial signs that the growth rate may moderate. There was a decrease in revenue in commerce and services, which reflects domestic demand and especially private consumption. It is possible, although it is still too early to determine, that private consumption, that was a major factor in the expansion of the business sector, is lessening. The industrial production index, which reflects the supply side of the business sector, also declined, but the level of industrial production is still high. The import index, which consists mainly of inputs to domestic production, has expanded again, so it is premature to talk about an adverse turnaround in business sector activity. The number of employee posts in the business sector is rising, a testament to the strength of the labor market.

The components of the April index include: a decrease of 1.1% in the industrial production index in March, after an increase of 1.0% in February; a 0.8% decrease in commerce and services revenue in March after a 2.8% increase in February; an increase of 3.6% in the imports index in April, after a decrease of 1.6% in March and a 0.4% increase in the number of employee posts in the business sector in February, after a decrease of 1.2% in January.

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