It appears that there is a slowdown in the activity of the business sector
The level of economic activity is like that which prevailed on the eve of the war
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The Melnick State of the Israeli Economy Index did not change in July 2024. It appears that there is a slowdown in the activity of the business sector; The recovery that began two months after the outbreak of the war has apparently come to an end. The activity level of the business sector in July 2024 is similar to that of September 2023, before the outbreak of war. The total revenue in all the branches of the economy*, which reflects domestic demand and especially private consumption, is characterized by volatility indicating uncertainty regarding demand in the economy. The industrial production index, which reflects the supply side of the business sector, does not indicate continued expansion. In the import index, which mainly consists of inputs for domestic production, abnormal volatility has continued in recent months. The number of employee posts in the business sector does not indicate weakness in the labor market.
The components of the July Index include: a 0.9% decrease in the industrial production index in June, after a 1.4% increase in May; a 1.1% decrease in revenue in all branches of the economy in June after a 1.6% increase in May; a 3.3% increase in the import index in July, after a 5.3% decrease in June; and a 1.7% increase in the number of employee posts in the business sector in May, after a 1.2% decrease in April.
*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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