State of the Economy Index continues sharp slide

The fall, along with drops in previous months, illustrates the economy's descent into a recession.

The Bank of Israel said today that the composite State of the Economy Index fell 1.2% in January.

The sharp fall, and the drops in previous months as well, illustrates the economy's descent into a recession. According to the Bank of Israel, the first signs of the recession were seen in the composite index in the fourth quarter of 2008.

The worsening state of the economy was seen in the falls in most components of the index, and in an especially sharp fall in the trade and services revenue index. The index of manufacturing production, though, actually rose slightly.

A privately calculated index that also tracks economic activity, the Melnick Index, developed by Prof. Rafi Melnick of the Arison School of Business at the Interdisciplinary Center, Herzliya, fell 0.9% in January.

Published by Globes [online], Israel business news - www.globes-online.com - on February 19, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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