Bank of Israel: State of Economy Index up 0.3% in August despite of the Lebanon war

Economic expansion slowed down in the two months period, July-August, because of the Lebanon war
 
The Bank of Israel, Israel's central bank, released last week it's State of the Economy Index, indicating a modest increase of 0.3% in August 2006, despite the second Lebanon war.
 
The State of the Economy Index which was prepared by the Bank's research department, noted, however, that the rise in the index, in August, indicated that economic expansion slowed down in the two months period, July-August, because of the Lebanon war.
 
The Bank also noted that the increase in the index in August was largely affected by the increase in industrial output as well as increase in import and export of goods.
 
These increases, according to the index, were offset by sharp fall in trade and services proceeds and the export of tourism services. Export of tourism services fell by almost 41% in the two war months of July-August, compared with June 2006.
 
The index also indicates a 0.6% increase in July-August, and an annualized increase of 5.5% in January-August.
 
Analysis of changes in the index's components show that:
Exports of goods rose by 3.5% in August; Export of services rose by 2.2% in August ( after 0.5% decrease in July); Industrial output rose in July by a seasonally adjusted 1.5% in July and by 3.1% in June-July; Trade and services proceeds was down in July by a seasonally adjusted 2.5%, and by 5.1% in June-July; Imports rose 5.2% in August.
 
Bank of Israel figures indicate that the State of the Economy Index rose by a fairly high 7% in 2004 and 7.2% in 2005.