Bank Hapoalim and the Israeli Purchasing and Logistics Managers Association reported that Israel's purchasing managers' index (PMI) rose 0.5 point to 50.0 points, reaching the 50 point level that separates manufacturing expansion from contraction for the first time since last April.
The 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. The report noted that "The main improvement in the index was due to an increase in the export demand component and the employment component that point to expansion."
The PMI reached a high of 59.1 in December 2010. In November 2013, it hit a year low of 44.5 (index points). The Feb '14 Changes in PMI were as follow: New orders - domestic up 2.9 (index points), New orders - exports up 2.7(index points) Production down 2.0 (index points), Employment up 5.6 (index points) Raw materials prices up 2.6 (index points), Inventory - finished goods up 2.4 (index points) Inventory - raw materials down 5.3 (index points), Inventory - accrual purchases down 2.9 (index points), Supplier delivery time down 3.9 (index points), imports Supplier delivery time up 0.4 (index points)