The index has dropped 15.2 points in the past three months and had peaked at 68.8% last November
Israel's purchasing managers index (PMI) compiled by Bank Hapoalim and the Israel Purchasing and Logistics Managers Association fell to 48.1% in May from 59.2% in April, its first reading below 50% since May 2009. 50% is the dividing line between economic expansion and contraction.
The index has dropped 15.2 points in the past three months and had peaked at 68.8% last November.
In a press release Bank Hapoalim said, "Most of the components of the index fell sharply, including domestic demand, export demand, and manufacturing output. The employment component continued to show expansion for the tenth consecutive month, albeit it too showed a significant slowdown."
The Bank added that the employment component continues to show an expansion for the 10th straight month although even here there has been a slowdown”.