Industrial exports fell by 9% in real terms in January-October 2012, the Manufacturers Association of Israel reported today. Industrial exports fell by 5% in real terms in October-November, compared with the third quarter.
Industrial output fell by 1.2% in September-October of 2012, compared with the preceding months, after rising by 3.2% in July-August, and by 2.6% in the second quarter.
A breakdown of output by industry found that higher output by the chemicals (excluding pharmaceuticals) and electronic components industries, offset falling output by other industries. High-tech output fell by 2.3% in September-October, mixed-low technology output fell by 1%, and low technology output fell by 0.6%. Mixed-high tech output rose by 1.7%.
Manufacturers Association Economics Division director Ruby Ginel said, "In many cases, the decline in industrial activity precedes a decline in economic activity in general. It should be remembered that the wheels of industry are also the accompanying wheels of trade and services and of economic and jobs growth. When there is global production surpluses and a slowdown in demand, Israeli industry, which operates in an especially challenging business environment, struggles to meet rising competition."
Ginel added, "Since the beginning of the year, industry has absorbed NIS 700 million in added costs, due to government decisions to raise the price of water, employers' tax, arnona (local property tax), and more. These economic edicts immediately harm the competitiveness of Israeli industry, and are liable to harm growth, cause further layoffs, and reduce the government's revenues."
Published by Globes [online], Israel business news - www.globes-online.com - on January 2, 2013
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