The rise this month was due to rises in the indices of manufacturing production and imports of consumer goods and production inputs
The Bank of Israel (BoI) reported last week that the composite state-of-the-economy index rose by 0.1% in May 2010. The rise, following those in previous months, shows that the recovery in economic activity is continuing, albeit at a slower pace.
The rise this month was due to rises in the indices of manufacturing production and imports of consumer goods and production inputs. These were partially offset by reductions in the indices of goods and services exports. The main components of the index moved as follows: the index of manufacturing production rose by 1.7% in April, following its 0.3% rise in March. The trade and services revenue index rose by 0.1% in April, following its 1.5% increase in March.
The services exports index declined by 0.9% in May, following its 14% surge in April. The goods exports index fell by 2.6% in May, further to its 4.7% decline in April. The index of consumer goods imports rose by 5% in May, following its drop of 1.5% in April. The index of imports of production inputs increased in May by 1.9%, following its 1.4% fall in April.
In parallel to the Bank of Israel, Dr. Melnik, provost of the Lauder School of Government, Strategy and Diplomacy and Professor at the Arison Business School at the Interdisciplinary Center (IDC), published the monthly Melnick State of the Economy Index showing an increase of 0.4% in May.
According to the Melnick State of the Economy Index, the business sector continues to expand. Industrial production continues to evolve positively, reflecting the continuous expansion growth of supply -– growing moving in the same direction as the business sector. The revenue in commerce and services also continues to grow, reflecting the continuous expansion of domestic demand.
The components of the May Index include: an increase of 1.7% in the Industrial Production Index in April, after an increase of 0.3% in March; an increase of 0.1% in the Index of Revenue in Commerce and Services in April, after a decrease of 1.5% in March; an increase of 0.3% in the Imports Index May, after a decrease of 1.9% in April, and a decrease of 1.1% in the number of employee posts in the business sector in March, after an increase of 0.3% in February.