The Bank of Israel stresses that relatively high growth in real economic activity indices were reflected in a 3.2% increase in the combined index
According to a review of companies, for the first quarter of 2006, published early last week by the Bank of Israel, the bank pointed out that economic activity in all sectors, including construction, had continued to expand during 1Q of 2006.
"Growth of industrial production and services accelerated in the periods surveyed, and the beginning of recovery was detected in the construction sector," the central bank said. The Bank of Israel stresses that relatively high growth in real economic activity indices were reflected in a 3.2% increase in the combined index on the state of the economy in the period surveyed, as well as in positive labor market trends, stability in financial markets, high yields on the Tel Aviv Stock Exchange and a significant increase in the volume of trade.
The Bank noted that for the first time, a slight increase is expected in activities in the construction sector.
The construction industry had ended four years of contraction caused by the economic recession and the recent Palestinian conflict with Israel.
Following the survey, conducted among 620 companies, the Bank of Israel notes that companies and businesspeople expect economic expansion to continue during the second quarter of the year.