The slowdown in business sector activity worsens
At the current rate, the business sector’s GDP in 2024 will grow by only about 0.2 percent
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The Melnick State of the Israeli Economy Index fell by 0.2 percent in September 2024. The slowdown in business sector activity worsens; at the current rate, the business sector’s GDP, in 2024, will grow by only about 0.2 percent. The total revenue in all the branches of the economy, which reflects domestic demand and mainly private consumption, continues to fluctuate, without an upward trend, and apparently, indicates the exhaustion of the increased growth in private consumption that was the main factor in the increase in economic activity. The industrial production index, which reflects the supply side of the business sector, also does not indicate an increase and fluctuates around a stagnant level. The import index, which consists mainly of inputs for domestic production, increased abnormally, probably due to abnormal imports that do not reflect a trend. The number of employee posts in the business sector indicates a low level of about 70 thousand, relative to that of September 2023 before the outbreak of the war, which reflects supply constraints due to the mobilization of reserves and the quarantine of workers from the territories.
The components of the September index include: a decrease of 0.8% in the industrial production index in August, after a 1.5% increase in July; a decrease of 2.6% in revenue in all branches of the economy in August after a 3.2% increase in July; an increase of 11.4% in the import index in September, after a 2.1% decrease in August; and a 0.3% increase in the number of employee posts in the business sector in July, after a 0.6% decrease in June.
*Statistical note: from the monthly index of June 24, the data series of revenue in commerce and services was replaced by the revenue in all branches of the economy (without diamonds).
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