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June industrial production rises 2%

אוגוסט 19, 2009. Jerusalem Post: Sharon Wrobel

Industrial production grew by a seasonally adjusted 2.1 percent in June, and trade and services revenues rose by 4% in the second quarter, marking the first increases of 2009, the Central Bureau of Statistics reported Tuesday.

Last week the bureau said gross domestic product had risen by 1% in annual terms in the second quarter, after contracting by 3.2% in the first quarter and 1.4% in the last quarter of 2008.

"Signs of an economic awakening are too optimistic and too early," Supervisor of Banks Rony Hizkiyahu said Tuesday. "The emergence out of the recession will be slow, and the impact will be felt in the real economy. There has been a massive intervention into global economies, creating huge deficits. We can still expect surprises ahead of us."

In recent months the sharp fall in industrial production, which hit the economy at the beginning of the year, slowed down, led by a return to growth in the hi-tech sector. Production fell an annualized 0.3% in the April-June period and was down 7.4% in the first half of 2009. Hi-tech production rose 3.1% in April-June, after declining by 2.6% in January-March.

Not including the impact of the hi-tech sector, industrial output contracted by 2% in April-June.

Industrial production in the mixed-traditional technology sectors - rubber, plastics, metal goods and jewelry - dropped 4.6% in the second quarter, compared with a 31.4% plunge in the first quarter.

In the mixed hi-tech sector - chemicals and electronic equipment - the rate fell 2.2% in 2Q, compared with a decline of 19% in 1Q.

In the traditional industry sector - food, textiles, clothing and wood - production rose 0.4% in 2Q, compared with a decline of 7.4% in 1Q.

Revenues of the trade and services sectors rose 4% in annual terms in 2Q, recovering from a fall of 5.5% in 1Q.

Revenues of the food and hospitality services sector increased 5.3% in annual terms in 2Q, after a plunge of 5.8% in 1Q.

Wholesale and retail revenues grew 3% in 2Q, after falling 5.7% in 1Q.

Revenues in the health and welfare services sector grew 7.4% in 2Q, after rising 6.3% in 1Q.

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