The BOL reported the composite state of the economy index compiled by the Bank rose in November by 0.1% and reflected a rise in industrial output, and exports of goods
The Bank of Israel (BOL) reported last week that the composite state of the economy index compiled by the Bank rose in November by 0.1%. The BOL noted that since July, the index has pointed to a rise in economic activity at a slower pace than was recorded in the first half of the 2010.
The rise for the month reflected a rise in industrial output, and exports of goods. These were offset by falls in imports of consumer goods and imports of raw materials. The index is a synthetic cyclical indicator for examining the direction in which real economic activity is moving, in real time.
It is calculated from the monthly changes in seven components that reflect different aspects of real economic activity, i.e., the indices of manufacturing production; imports of consumer goods; imports of production inputs; trade and services revenue; the number of employee posts in the business sector; exports of goods (excluding agriculture, fuel, diamonds, and ships and aircraft) and exports of services (tourism, computer and know-how, communications, insurance, and other business services).
The Melnick State of the Economy Index compiled by Prof. Rafi Melnick and published in parallel to the BOL, indicates an increase of 0.2% in November 2010. According Melnik the economic activity returns to expansion.
The components of the Octber Index include: an increase of 5.4% in the Industrial Production Index in October, after a decrease of 3.2% in September; an increase of 1.4% in the Index of Revenue in Commerce and Services in October, after a decrease of 0.4% in September; a decrease of 2.6% in the Imports Index in November, after an increase of 6.8% in October, and a decrease of 0.5% in the number of employee posts in the business sector in September, after an increase of 0.4% in August.
