The Melnick State of the Economy Remained Unchanged in December

תפריט

24/01/2024

The Melnick State of the Economy Remained Unchanged in December

It appears that the business sector activity is stabilizing at a low level, which had declined in the first two months of the war

The growth of the business sector in 2023 is estimated at 2.2 percent

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The Melnick State of the Israeli Economy Index did not change in December 2023. The development of the Index indicates that the decline in the activity of the business sector has halted; At this stage, it seems that the activity of the sector is stabilizing at the low level to which it deteriorated in the first two months of the war. According to the index, the GDP of the business sector decreased by 1.7 percent in the last quarter of the year and the growth in 2023 amounted to only 2.2 percent. The low level of revenue in commerce and services, which reflects domestic demand and especially private consumption, reflects the main source of the decline in activity in the economy; The level was corrected slightly upwards in the month of November. The industrial production index, which reflects the supply side of the business sector, also indicates a similar but less severe behavior – a low level of activity and a slight upward correction in November. The import index, which consists mainly of inputs for domestic production, continues to decrease and indicates pessimism, probably related to the continuation of the war, regarding the continued growth of economic activity. The number of employee posts in the business sector, in the first month of the war, fell sharply indicating weakness in the labor market.

The components of the December Index include: a 2.5% increase in the industrial production index in November, after a 5.2% decrease in October; a 3.2% increase in revenue in commerce and services in November after a 13.1% decrease in October; a 1.2% decrease in the import index in December, after a 0.6% decrease in November; and a 3.3% decrease in the number of employee posts in the business sector in October, after an increase of 0.4% in September.