The Purchasing Managers Index increased in January 2010 by 1.3 percentage points to a level of 65.1% up from 63.8% in the previous month
Bank Hapoalim and the Israeli Purchasing and Logistics Managers Association’s Purchasing Managers Index (PMI) increased in January 2010 by 1.3 percentage points to a level of 65.1% up from 63.8% in the previous month.
The two bodies said that the index's high level over the past four months indicate rapid economic expansion by the manufacturing sector. The employment component rose to 68 in January, indicating that businesses are hiring.
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.
January was the eighth consecutive month that the index was over 50%, the dividing line between economic expansion and contraction.
The PMI posted its eighth straight month above 50, indicating expectations of expansion of manufacturing activity. 'The level of the index is among the highest measured so far and most of the components of the index indicate expectations for expansion,' the report said.
Jan 10 Dec 09 Change
PMI 65.1 63.8 +1.3
New orders - domestic 63.3 62.0 +1.3
New orders - exports 67.3 62.5 +4.8
Production 74.5 70.7 +3.8
Employment 68.0 66.2 +1.8
Raw materials prices 65.9 58.7 +7.2
Inventory - finished goods 43.6 46.4 -2.8
Inventory - raw materials53.7 55.8 -2.1
Inventory - accrual purchases 65.0 69.2 -4.2
Supplier delivery time - imports 33.1 40.0 -6.9
Supplier delivery time - domestic45.5 47.8 -2.3