Intel has 3 r&d plants in Israel. In the second quarter of 2009, he company recruited tens of new software engineers. that trend is expected to continue for 3Q09.

Info from Israel’s Central Bureau of Statistics reveal that this is no isolated item. There is a clear rise in the number of hours worked, although not of all of this is carried through into increased employment. Revenues from commerce and services rose 4% annualized in 2Q09, a sharp reverse of the 5.5% drop in the previous quarter.

Add in a booming stock market and better tourism figures, what does all this mean?

To be clear, Israel’s economy is not back to the rosy levels of this time last year. Inflation soared in July, as the 1% rise in VAT took effect. Many companies are still watching their wage bill.

What is increasngly evident is that Israel is pulling itself away from the bottom of the pit. That is what overseas investors look for.