The Bank Hapoalim and the Israeli Purchasing and Logistics Managers Association’s Purchasing Managers Index (PMI) for January 2013 rose by 5.2 percentage points to a level of 49.3 points.
An increase was recorded in most index components, some which actually topped 50 points-the level marking the distinction between activity expansion and contraction. Notable increases were recorded for January in export new orders, which rose by 11.7 percentage points to 52.3 and employment, which expanded by 8.4 percentage points to 58.2.
Bank Hapoalim economists noted that: "The PMI rose for the third consecutive month in January and its level is approaching the 50 point divide .A significant improvement was recorded in January in the export new orders component and in employment.
These trends are similar to those apparent from worldwide PMI surveys, and the local index may have been affected by a global increase in orders."
Growth in the Israeli economy slowed to 2.5% annualized in the fourth quarter of 2012, concurrent with a decline in exports and investments and static private consumption.
Data on activity in the manufacturing sector published todate were mostly negative, especially the large decrease in industrial exports during recent months. 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
