The Melnick State of the Economy Index increased by 0.3% in August 2009, indicating that the decline in economic activity has halted, but, according to Prof. Rafi Melnick of the Arison School of Business at the Interdisciplinary Center, Herzliya, there are still no signs of a transition to economic growth.

In a detailed account based on data provided by the Central Bureau of Statistics, Prof. Melnick said that "At this stage, it seems that emergence from the recession will be modest and prolonged, and characterized by a modest increase in various activities in the business sector. This level of activity reflects weakness in the labor market, as reflected by the increase in unemployment.”

Prof. Rafi Melnick developed the State of the economy index for the Israeli economy. The index, which tracks business activity through the basic macroeconomic data published by the Central Bureau of Statistics. The index is published to the public, by IDC, on a monthly basis.