2010.07.1912:04:00UTC+00Israeli Jobless Rate Falls, Manufacturing Output Slows

Israel's unemployment rate dropped for the ninth consecutive month in May, the Central Bureau of Statistics said Monday. Meanwhile, the country's manufacturing output grew for the sixth consecutive month in May, but at a slower pace than in the previous month.

The jobless rate fell slightly to 6.5% in May from 6.6% in April. In the same month a year ago, the unemployment rate was 7.8%.

At the same time, the statistical office reported that the country's manufacturing output rose a seasonally adjusted 0.6% month-on-month in May, slower than the 1.9% increase in April. In May 2009, production decreased 0.3%.

In the meantime, data from the Manufacturers Association of Israel showed that the country's industrial exports declined 2.5% in real terms in the second quarter.

Exports, excluding pharmaceutical exports, fell at a sharper rate of 8.5%, while exports by pharmaceutical industries recorded a sharp jump of 37%.

Separately, the Central Bureau of Statistics downwardly revised its estimate for first quarter gross domestic product growth to 3.4% year-on-year from the 3.6% previously reported. GDP rose 4.4% in the fourth quarter.

During the period, private consumption expenditure increased 4.4% annually, while general government consumption expenditure rose 4.1%. In April, the Israeli central bank had forecast that the economy would grow 3.7% in 2010. It expects exports to grow 9.2% this year, while the average unemployment rate is expected to drop to 7%.

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