The recovery of the business sector activity continues
The main cause of the recovery is private consumption
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The Melnick State of the Israeli Economy Index increased by 0.3 percent in April 2024. The business sector continues to grow although the level of economic activity has not yet returned to pre-war levels. The revenue in commerce and services, which reflects domestic demand and especially private consumption, continues to rise and is the main factor for economic growth in the second quarter of 2024. The industrial production index, which reflects the supply side of the business sector, remains low and probably reflects a slow return to activity in the industry. The import index, which consists mainly of inputs for domestic production, corrected itself downward this month. It is possible that the jump in imports recorded the previous month was temporary. The number of employee posts in the business sector remains unchanged and reflects stability in the labor market.
The components of the April index include: a 0.3% decrease in the industrial production index in March, after a 2.6% decrease in February; an increase of 0.8% in revenue in commerce and services in March after a decrease of 0.9% in February; a decrease of 8.0% in the import index in April, after an increase of 7.8% in March; and no change in the number of employee posts in the business sector in February, after an increase of 0.7% in January.
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