The Bank of Israel’s Composite State of the Economy Index for December
2016 increased by 0.45 percent, slightly higher than the monthly rate of
increase in recent years. The Composite Index was positively affected this
month by a particularly sharp increase in the import of consumer goods, due to
an exceptional increase in vehicle purchases, which were brought forward due to
the change in green taxation rules that came into effect in January. Other than
that, increases in the Industrial Production Index and in the trade and
services revenue indices for November also contributed to the increase in the
Composite Index. In contrast, the import of manufacturing inputs continued to
decline.

 

Index readings for previous months were revised slightly upward due to
an upward revision of business output estimates for previous quarters, and due
to the more positive than expected figure for services exports in October (Table
1). Table 2 presents the development of components of the Index in the past few
months.

 

Summing up 2016, the Composite Index increased by 3.7 percent, similar
to the previous estimate of GDP growth by the Central Bureau of
Statistics.  The import of consumer goods,
trade and services revenue, and services exports were the components with the
largest contribution to the increase of the Composite Index this year.  In contrast, Industrial Production and goods
exports declined, moderating the pace of increase in the Composite Index.  The increase in the index remained stable
during the year.

 

 

Table 1: Revisions in the Composite Index

Revision

Previous data

New data

December

 

0.45

November

0.34

0.36

October

0.19

0.30

September

0.27

0.30

 

 

Table 2: Changes in the Index components in recent months

(monthly percent change, unless otherwise noted)

 

December 2016

November 2016

October 2016

September 2016

Industrial
Production Index (excluding mining and quarrying)

 

3.3

-1.6 

 -2.4

Services
Revenue Index (excluding education, and public administration)

 

1.3

 -0.8

1.7 

Retail Trade
Revenue Index

 

4.6

 -1.8

 1.3

Imports
of consumer goods1

27.1

-3.6

2.2

9.8

Imports
of manufacturing inputs (excluding fuels)1

-1.8

0.1

-1.4

-1.2

Goods
exports (excluding agriculture) 1

0.0

9.6

-0.5

1.3

Services
exports (excluding transportation) 1

 

 

2.7

 0.5

Number of
employee posts in the private sector

 

 

 0.0

0.4 

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

3.7

3.8

3.7

3.6

Building starts3

 

 

 

-1.1

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 Since the
Central Bureau of Statistics stopped publishing monthly figures on building
starts, beginning in July 2016 the method of calculation of the building starts
component of the Index was changed. The component is calculated at a quarterly
frequency, and the change (seasonally adjusted, in percent) is attributed to
the last month of the quarter for which the figure is published. 

 

For additional data and explanations please click here.

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

 

 

 

 

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