The Bank Hapoalim and the Israeli Purchasing and Logistics Managers Association’s Purchasing Managers Index (PMI) inched down 4.6 points in February to 48.7.
Although it is still below the 50-threshold that separates contraction from expansion in the manufacturing sector, the index is far above the record low registered in August, when the country was immerse in Operation Protective Edge, 50-day Gaza conflict.
February’s figure reflected a decrease in most of the components that comprise the index. Output and employment declined over the previous month. Export new orders recorded a drop.
Bank Hapoalim cooperates with the Israeli Purchasing and Logistics Managers Association in the publication of data on the purchasing managers' index in Israel. Purchasing managers' indices are leading indices that can forecast changes in growth trends; these indices draw extensive global coverage and affect financial markets. Indices include the American ISM index, the European PMI index, and the global index published by JPMorgan Chase Bank.
The index is calculated based on the responses to six questions provided by purchasing managers at leading industrial companies in the Israeli economy. The methodology for computing the index is consistent with the prevalent methodology worldwide for the calculation of purchasing managers' indices. The Israeli index is included in the calculations of the European and global purchasing managers' indices.