The Composite State of the Economy Index for May declined by 0.03 percent

The Composite State of the Economy Index for May declined slightly, by 0.03 percent, following an increase of 0.15 percent in April, such that overall in the second quarter so far, there has been an increase in activity.

The Index was positively affected by increases in services revenue (April), retail trade revenue (April), the import of manufacturing inputs (May), services exports (March), employee posts (March), and building starts (March).  The job vacancy rate remains at a record high that reflects the continued desire of employers to expand their operations following the reopening of the economy.  In contrast, the Industrial Production Index (April), the import of consumer goods (May), and goods exports (May) declined, which had a negative impact on the Index. 

Table 1 presents the revisions to the Index for previous months.  Table 2 presents the development of components of the Index in the past few months.

Table 1: Revisions in the Composite Index

Revision

Previous figure

New figure

May

 

-0.03

April

0.18

0.15

March

0.09

0.03

February

0.07

0.16

January

0.07

0.09

December

-0.09

-0.09

 

Table 2: Changes in the Index components in recent months

(monthly percent change, unless otherwise noted)

 

May

April

March

February

Industrial Production Index

(excluding mining and quarrying)

 

-0.4

-2.9

3.4

Services Revenue Index

(excluding education and public administration)

 

1.5

-0.1

3.7

Retail Trade Revenue Index

 

1.0

-1.1

1.2

Imports of consumer goods1

-5.0

13.7

-6.2

-2.5

Imports of manufacturing inputs

(excluding fuels)1

1.5

-2.9

2.1

-2.5

Goods exports (excluding agriculture)1

-9.9

11.1

4.8

4.9

Services exports (excluding transportation)2

 

 

2.1

1.7

Number of employee posts in the private sector

 

 

0.1

0.2

Job vacancy rate in the business sector3

5.1

5.1

5.1

5.1

Building starts4

 

8.2

 

 

 

1 Goods imports and exports are calculated in fixed prices (adjusted for changes in foreign trade price indices).

2 Services exports are calculated in real terms using the Consumer Price Index, and are comprised of the export of other business services and the export of tourism services.

3 The job vacancy rate is calculated out of the total number of employed people, and is included in the index at its seasonally adjusted level.

4 Since the Central Bureau of Statistics publishes data on building starts once per quarter, the data integrated into the model are at a monthly frequency based on additional sources, such that the distribution is consistent with the quarterly data published by the Central Bureau of Statistics (in percent, seasonally adjusted).

 

 


Detailed explanations regarding how the Composite Index is calculated, as well as detailed long-term tables, can be found at

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

 ​​​​