Jerusalem,
September 30, 2009 221/2009
Previous Press Release on Foreign Trade Price Indices appeared on June 23, 2009
Foreign Trade Price Indices in Second Quarter 2009
Beginning Quarter 2/2009, indices are chained and presented on the base of 2005. To calculate a continuous series based on 2000, the requested index must be multiplied by the 2005 index based on 2000.
In the second quarter 2009 The terms of trade index (excluding ships, aircraft diamonds and fuels) rose by 5.4 percent Export prices (excluding aircraft and diamonds) rose by 4.4 percent and import prices (excluding ships, aircraft, diamonds and fuels) drop by 0.9 percent
Exports, Imports and Terms of Trade Indices
(excl.ships, aircraft, diamonds and fuels)
130
Indices 2005=100
120
110
100
90 I-III IV-VI VII-IX X-XII I-III IV-VI VII-IX X-XII I-III IV-VI VII-IX X-XII I-III IV-VI 2009
2006
2007
2008
Exports
Imports
Terms of trade
This information is based on preliminary data on goods that passed through Customs. Data do not include trade between Israel and the Palestinian Authority. Imports are valued c.i.f., and exports are valued f.o.b. The terms of trade index is calculated as the ratio of the total export price index to the total import price index. Export Prices Export prices, in the second quarter of 2009, point to a rise of 5.3 percent after a decrease of 6.2 percent in the first quarter of the year. Price indices of manufacturing exports (excluding diamonds) point to a rise of 5.1% in April-June 2009, continuing a 1.3% decrease in the first quarter of 2009. Price indices of agricultural exports rose by 3.5% in the second quarter of 2009.
Written by Helen Brusilovsky For explanations and clarifications regarding the contents of this Press Release, Please contact the Press Relations Unit, at 02-652 7845, 050-623 5124
Breakdown of Price Indices of Manufacturing Exports, by Technological Intensity Price indices of manufacturing exports in high technology industries rose by 1.7% in April-June 2009, continuing a rise of 1.4% in January-March 2009.
Price Indices of Manufacturing Exports by Technological Intensity (excl.diamonds)
160
Indices 2005=100
140
120
100
80
I-III IV-VI VII-IX X-XII I-III IV-VI VII-IX X-XII I-III IV-VI VII-IX X-XII I-III 2009 IV-VI 2006 2007 2008
Low Technology Industries Medium-High Technology Industries
Medium-Low Technology Industries High Technology Industrie
Detailed data by industries reveal an increase in price indices in exports of aircraft (7.9%), as well as in the price index of exports of Pharmaceutical products (4.1%).
Price Indices of Manufacturing Exports by High Technology Industries
120 115
Indices 2005=100
110 105 100 95 90 I-III IV-VI VII-IX X-XII I-III IV-VI VII-IX X-XII I-III IV-VI VII-IX X-XII I-III IV-VI 2009
2006
2007
2008
Electronic communication equipment Pharmaceutical products
Equipment for control & supervision
Price indices of manufacturing exports in medium-high technology industries (excluding pharmaceutical products) rose by 11.1% in April-June 2009, after a decrease of 6.1% in the first quarter of the year. Detailed data by industries indicate that price indices increased in exports of chemicals and refined petroleum, excluding pharmaceuticals, (14.7%), and in exports of motor vehicles (15.9%).
2 Foreign Trade Price Indices in Second Quarter 2009
Price Indices of Manufacturing Exports by Medium-High Technology Industries
180 170
Indices 2005=100
160 150 140 130 120 110 100 90 I-III IV-VI VII-IX X-XII I-III IV-VI VII-IX X-XII I-III IV-VI VII-IX X-XII I-III IV-VI 2009
2006
2007
2008
Chemical & refining petroleum, excl. pharmaceutical products Machinery & equipment Electrical equipments & electrical motors
Price indices of manufacturing exports in medium-low technology industries rose by 3.4% in the second quarter of 2009, continuing a rise of 0.6% in the first quarter of 2009. Detailed data by industries indicate that price indices increased in exports of mining and quarrying exports (9.3%) and in exports of non-metallic mineral products (6.8%).
Price Indices of Manufacturing Exports by Medium-Low Technology Industries
230 210
Indices 2005=100
190 170 150 130 110 90
I-III
IV-VI
VII-IX
X-XII
I-III
IV-VI
VII-IX
X-XII
I-III
IV-VI
VII-IX
X-XII
I-III
IV-VI
2006
2007
2008
2009
Mining & quarrying
Rubber & plastic products
Metal products
The price indices of manufacturing exports in low technology industries fall by 1.4% in April-June 2009, continuing a decrease of 5.3% in the first quarter of 2009.
Price Indices of Manufacturing Exports by Low Technology Industries
130
Indices 2005=100
120
110
100
90
I-III
IV-VI
VII-IX
X-XII
I-III
IV-VI
VII-IX
X-XII
I-III
IV-VI
VII-IX
X-XII
I-III
IV-VI
2006
2007
2008
2009
Food products, beverages & tobacco Paper, printing & paper products
Textiles, w earing apparel & leather
3 Foreign Trade Price Indices in Second Quarter 2009
Detailed data by industries indicate that price indices decreased in exports of wood and furniture (-8.6%), and in exports of food products, beverages and tobacco (1.8%). Import Prices Import prices point to a rise of 0.9percent in the second quarter of 2009, after a fall of 9.6% in the first quarter of 2009. Breakdown of Price Indices of Imports, by Economic Use
Price indices of Production Inputs (excluding fuels) fall by 1.6% in April-June 2009. Detailed data by commodity Groups indicate that price indices decreased in most of the categories, in imports of inputs for paper industry (-8.5%), in imports of Iron and steel (-6.2%), and in price of imports of inputs for agriculture imports (-2.6%). Price indices of Consumer goods fall by 0.5% in April-June 2009. Detailed data by commodity Groups indicate that price indices decreased in imports of non-durable goods (-1.3%), and in import price of durable goods rose by 0.3%.
Price indices of Investment goods point to a rise of 0.9 percent in April-June 2009. Detailed data by commodity Groups indicate that price indices of imports of machinery and equipment rose by 1.3% and in import price of transport equipment fall by 1.0%.
Price indices of imported Fuels point to a rise of 8.0% in the second quarter of 2009.
Related links and publications Definitions and explanations
“Foreign Trade Statistics Monthly” “Israel’s Foreign Trade” – Press Release “Foreign Trade by Countries” – Press Release “Imports by Country of Origin-2008” – Press Release “Foreign Exchange Rates” – Press Release (Hebrew only) “Trade Balance by Technological Intensity” – Press Release “Exports by Country and Industry, 2008” – Press Release (Hebrew only) “Foreign Trade of Israel” – Statistilite Series No 41 "Foreign Trade of Israel – 2005" Statistilite Series No 66 Exports, by Commodities and Countries, 2008 (Internet only) Exports, by Commodities and Countries, 1996-2007 (CD only) Imports, by Commodities and Countries, 2007-2008 (Internet only) Imports, by Commodities and Countries, 2007 (CD only) Imports, by Commodities and Countries, 2002-2006 (CD only) Imports, by Commodities and Countries, 1996-2001 (CD only)
Next Press Release on Foreign Trade Price Indices will appear on December 23, 2009.
4 Foreign Trade Price Indices in Second Quarter 2009
Explanatory notes
Price indices are intended to measure the change, which occurred in the average price of total imports, total exports, or a group of commodities, between two periods. Price index (unit value) is calculated with weights of the current period according to Paasche formula. Volume index is derived as the quotient of the value and of the Paasche price indices. Terms of Trade index are calculated according to Paasche price index.
Price of a single commodity (price unit value) is determined according to the average unit value of the commodity, either exported or imported. The definition of commodities is based on the classification used for Customs tariffs (imports) and on the “Classification of Exports Commodities” (see chap. “Classification of Commodities”). The classifications do not always specify single items of uniform quality, but also groups of similar commodities. As a result, in some cases, the obtained changes in price of a commodity, as defined in the classification, reflect also quality differences of various components of the group (commodity). In some cases, price indices of similar commodities, published abroad, are used as a substitute for the average unit value. The information used to estimate price indices of foreign trade encompasses about 50 percent of the total import or export value. Once a year, the index commodities basket is updated and determined according to the preceding year commodities basket. Price indices are calculated in relationship to data of the preceding year and are chained to the annual average, which is presented in the tables. Beginning Quarter 2/2009, indices are chained and presented on the base of 2005. Beginning Quarter 2/2003, indices are chained and presented on the base of 2000. Beginning Quarter 2/1998, indices are chained and presented on the base of 1995. Please note:
To calculate a continuous series based on 1991, the requested index must be multiplied by the 1995 index based on 1991. To calculate a continuous series based on 1995, the requested index must be multiplied by the 2000 index based on 1995. To calculate a continuous series based on 2000, the requested index must be multiplied by the 2005 index based on 2000.
Formula Indices are calculated according to the Fisher formula, which is the geometrical mean of the indices calculated according to the Laspeyres and Paasche formulas:
I I *I
F P L P
P P
1
2
(p 1 q 0 ) (p 1 q 1 ) * (p 0 q 0 ) (p 0 q 1 )
1
2
Where:
IF P
- Price index according to the Fisher formula - Price index according to the Laspeyres formula - Price index according to the Paasche formula - Price in the current period - Price in the base period - Quantity in the current period
5 Foreign Trade Price Indices in Second Quarter 2009
IL P
IP P
p1 p0 q1
q0
- Quantity in the base period
Price indices calculated according to Laspeyres and Paasche formulas do differ due to the method of quantitative weighting in calculation of the average. According to Paasche formula, weights are for the current period, i.e., the surveyed quarter year. Hence, the changes obtained in this index reflect also the changes in weights. Consequently, the index tends to diminish the price changes. According to Laspeyres formula, quantitative weighting is made according to weights of the base year. Consequently, the index is not influenced by changes in weights between the surveyed quarter years and hence, the index tends to be generally higher than the index according to the Paasche formula. The 'ideal' index according to the Fisher formula is a geometric average of the two above said indices. The volume index of foreign trade is also calculated according to Fisher formula:
F Iq VI I F P
Where:
F Iq
- Volume index according to the Fisher formula - Value index - Price index according to the Fisher formula
VI
IF P
The indices of prices and volume of imports are published also according to economic use and S.I.T.C. whereas export indices - according to groups of economic branches, S.I.T.C. and by technological intensity.
Current data are revised continuously throughout the current reporting year. The data of a specific year are not th amended currently during that year but at the end of the year, that is in the 4 Quarterly, which includes information on all the current year.
6 Foreign Trade Price Indices in Second Quarter 2009