The Bank Hapoalim and the Israeli Purchasing and Logistics Managers Association’s Purchasing Managers Index (PMI) for December 2012 rose by 0.4 percentage point to a level of 44.1points. This level is still indicative of a decrease in manufacturing activity.
The above figure show that Israel's manufacturing activity contracted for the seventh consecutive month in December 2012. Although the Israel Purchasing Managers Index, rose to 44.1 points in December from 43.7 points in November, the index is still below the 50-point dividing line between economic expansion and contraction.
Bank Hapoalim economists noted that: The PMI for December showed a decrease in manufacturing activity for the seventh consecutive month. December 2012 was the first month when all components of the index were below 50 points, confirming survey findings. A similar trend was observed in the Business Trends Survey compiled by the Central Bureau of Statistics.
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.
Bank Hapoalim added, "Manufacturing production, excluding high tech, is falling industrial exports have been falling for six months, and industrial employment is also declining. We believe that these effects have been affected by the global situation and by high uncertainty, which are preventing new investment and hiring."
The JP Morgan Global Purchasing Managers Index rose above 50 points in December, to 50.2 points, indicating economic expansion, for the first time in six months. The US Purchasing Managers Index was over 50 points in December, but the Eurozone Composite Purchasing Managers Index, at 46 points, is still contracting.
The China Purchasing Managers Index rose to 51.5 points in December, marking the second consecutive month of expansion.