Companies Survey, 1st quarter, 2002

24/04/2002
All Press Releases In Subject:
The Economy and Economic Activity

Companies Survey, 1st quarter, 2002

Overview:

Reports from companies for the first quarter of 2002 indicate that the decline in activity in most of the principal industries continued—in manufacturing, trade, construction, hotels, and business services. The decline, which started with the outbreak of the intifada about a year and a half ago, affected all the main aspects of activity: in manufacturing, domestic sales and exports both fell; in the hotel industry, bed-nights fell steeply; the construction of buildings and infrastructure went down; in the two-digit transport industries developments varied, and in communications there were indications of an increase. Reports on constraints on increasing output declined in most of the principal industries on the demand side, and supply-side constraints rose, with the increase in financing difficulties. The decline in sales, in some industries, occurred mainly on the domestic side, as did the fall in orders. Average inflation expectations for the next twelve months rose significantly in the quarter to 3.7 percent a year, and the share of companies expecting inflation to exceed the upper limit of the range defined as price stability, 1–3 percent, also increased, to 63 percent. On average, companies expected the exchange rate twelve months hence to be NIS 4.8 to the dollar.

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