The Composite State of the Economy Index for July 2018 increases by 0.4 percent: The economy continues to grow at a solid pace

The Bank of Israel's Composite State of the Economy Index for July 2018 increased

by 0.4 percent. The growth rate of the Index has accelerated in recent months after some slowing in March and April. The Index for July was positively impacted by increases in consumer goods imports, in imports of manufacturing inputs, and by the renewed increase in the job vacancy rate in July. In contrast, the decline in services exports as well as in indices of retail trade revenue and of services revenue in June moderated the growth rate of the Index. There was essentially no change in the Index’s readings for previous months (Table 1). Table 2 presents the development of components of the Index in the past few months.

 

 

Table 1: Revisions in the Composite Index

Revision

Previous data

New data

July 2018

 

0.36

June 2018

0.35

0.32

May 2018

0.32

0.26

April 2018

0.26

0.18

 

 


 

 

 

Table 2: Changes in the Index components in recent months

(monthly percent change, unless otherwise noted)

 

July

2018

June

2018

May

2018

April

2018

Industrial Production Index (excluding mining and quarrying)

 

0.2

-2.9

0.6

Services Revenue Index (excluding education and public administration)

 

-2.9

2.1

-2.2

Retail Trade Revenue Index

 

-0.6

2.0

-1.8

Imports of consumer goods1

1.4

-0.3

0.6

-1.7

Imports of manufacturing inputs (excluding fuels)1

2.2

-3.1

2.7

2.9

Goods exports (excluding agriculture) 1

-2.8

9.4

-7.9

2.4

Services exports (excluding transportation) 1

 

-2.8

0.1

-2.4

Number of employee posts in the private sector

 

 

-0.1

0.0

Rate of vacant employee posts out of total number of employed people in the business sector2

3.9

3.8

3.8

3.9

Building starts3

 

 

 

 

1 Foreign trade indices are quantitative (in contrast to CBS monthly foreign trade indices).

2 The job vacancy rate is included in the Index at its level, seasonally adjusted and smoothed.

3 As the Central Bureau of Statistics ceased publishing monthly data on building starts, since July 2016 the calculation of the building starts component in the Composite Index has changed. The Component is calculated at a quarterly frequency and the change (in percent, seasonally adjusted) is attributed to the last month of the quarter for which it is published. The most recent data is for the first quarter of 2018, showing a decline of 11.1 percent.

 

For additional data and explanations please click here.

http://www.boi.org.il/en/Research/Pages/ind.aspx

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