Israel's Purchasing Managers Index (PMI) published by Bank Hapoalim and the Israeli Purchasing and Logistics Managers Association increased by 3.9 points in October 2015 to a level of 51.4 points, which reflects expansion in manufacturing activity.
Increases were recorded this month in the production, domestic new orders and employment components, and their level now shows expansion in activity. New orders for exports decreased and their level is 47.5. Bank Hapoalim economists noted that the Purchasing Managers Index is back on track to show expansion. The index level is volatile around the 50 points threshold, signaling stable activity.
The domestic new orders, employment and production components improved remarkably. On the other hand, new orders for exports fell. Recent economic indicators, published by the CBS, show a major fall in industrial exports and a decline in industrial production. 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.