The so-called ‘Composite State of the Economy Index’ has improved slightly. This is despite the fact that industrial production has recorded a slight decline. Learn more about the economic situation of Israel on ‘VonNaftali’: Subscription $29,90/year
The Bank of Israel give in her most recent press release the key figures on ‘The Composite State of the Economy Index‘ .
“‘The Composite State of the Economy Index‘ increased moderately, by 0.17 percent, in October, further to increases in the Index in August and September. This data is indicative of the continuing growth in economic activity in recent months.”‘The Composite State of the Economy Index‘ increased moderately, by 0.17 percent, in October, further to increases in the Index in August and September. This data is indicative of the continuing growth in economic activity in recent months.
The Index was positively affected by increases in the Industrial Production Index (September), the retail trade revenue index (September), the import of consumer products (October), employee posts (August), and credit card purchases (October). The job vacancy rate for October declined slightly, but remained at a high level that reflects the continued desire of employers to expand their operations. In contrast, the import of manufacturing inputs (October), goods exports (October), services exports (August), and electricity production (October) declined, which had a negative impact on the Index.
The upward revisions in the Composite Index for previous months are mostly due to a revision of the parameters in the index’s model, which was made this month in order to adjust the Index to the period following the COVID-19 crisis. This was done in order to reflect the increased volatility of the monthly indicators and of quarterly GDP growth relative to the years preceding the crisis.
As part of the revision, we allowed for volatility in the index, in the period from May 2021, that is 15 percent greater than in the previous version. As a result of the revision in the parameters, there was an upward change in the long-term growth rate of the Index, and therefore of the index readings of previous months (Table 1).”, writes the Bank of Israel
Press Release by Bank of Israel, selected as relevant, shortend and re-grouped by VonNaftali