The recovery of the activity of the business sector continues
A considerable increase in the import of private consumption goods was recorded
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The Melnick State of the Israeli Economy Index increased by 0.4 percent in March 2024. The recovery of the activity of the business sector continues after its decline in the first months of the war. The product of the business sector is growing, but its level is still lower than the level on the eve of the war. The revenue in commerce and services, which reflects domestic demand and especially private consumption, has returned to the level of the eve of the war and is leading to the recovery in the economy. It seems that the minority of trips abroad resulted in a sharp increase in private consumption in the domestic market. The industrial production index, which reflects the supply side of the business sector, remains significantly lower than it was on the eve of the war. The import index, which consists mainly of inputs for domestic production, corrected itself this month with a notable increase in the import of consumer goods, which is part of the increase in private consumption. The number of employee posts in the business sector has increased again and reflects an improvement in the labor market.
The components in March Index include: a 3.2% decrease in the industrial production index in February, after a 3.2% increase in January; a 0.9% decrease in revenue in commerce and services in February after a 4.6% increase in January; a 7.4% increase in the import index in March, after a 6.5% increase in February; and a 0.8% increase in the number of employee posts in the business sector in January, after a 1.7% increase in December.
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