Companies Survey, 3rd quarter, 2003

27/10/2003
All Press Releases In Subject:
The Economy and Economic Activity

Companies Survey, 3rd quarter, 2003

Overview:

Reports from companies for the third quarter of 2003 indicate that total economic activity rose slightly, following a similar rise in the second quarter and reductions in the previous ten quarters. Different trends were evident in different principal industries, and in nearly all industries activity was expected to decline in the next quarter. In manufacturing, output increased moderately, with a slight rise in exports and export orders; on the other hand, domestic sales and orders continued to fall. In business services the decline in revenue moderated, with a rise in sales abroad. Sales of trading companies continued rising, but were expected to fall in the next quarter; in the hotel industry the rise in bed-nights of foreign tourists as well as Israelis accelerated, but were also expected to drop in the next quarter. In the two-digit industries of transport and communications, the rise in air transport contrasted with the fall in overland transport and the standstill in communications. In construction, the steep downward trends in the construction of buildings and in infrastructure construction persisted. In reports on the severity of constraints on implementing activity, demand-side constraints featured more prominently than those on the supply side. 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 went down a little in the quarter to 2.5 percent, with the share of companies expecting inflation to be within the target inflation range remaining unchanged at 74 percent. Companies expected the exchange rate twelve months hence to be about NIS 4.8 to the dollar, on average.

Link to File