Companies Survey, 4th quarter, 2002

20/02/2003
All Press Releases In Subject:
The Economy and Economic Activity

Companies Survey, 4th quarter, 2002

Overview:

Reports from companies for the fourth quarter of 2002 indicate that the decline in activity in all the principal industries continued. Most of the main aspects of activity reflected the decline: manufacturing output continued to fall, and there was a drop in sales, mainly to the domestic market but also exports; sales of trading companies went down; in the hotel industry, bed-nights decreased, particularly of foreign tourists; in construction, the downward trends intensified, particularly in the construction of buildings, but also in infrastructure construction; developments in the two-digit transport and communications industries were not uniform; in business services, domestic sales went down, while exports rose. The demand side featured prominently in reports on the severity of constraints on implementing planned activity, with the construction industry reporting an intensification of the constraint. The main supply-side constraint was financing difficulties in all industries except for construction, in which the shortage of skilled labor headed the list. Average inflation expectations for the next twelve months dipped in the quarter to 4.6 percent. The share of companies expecting inflation to exceed the upper limit of the target inflation range went down slightly from 75 percent to 72 percent. Companies expected the exchange rate twelve months hence to be about NIS 5.0 to the dollar, on average.

Link to File