Bank Hapoalim’s Purchasing Managers Index declined by 1.6 points to 47.6 points. It was the second straight monthly decline and indicated a contraction in manufacturing activity.
The decline in the index in May mainly stemmed from a sharp decline in local demands. The index shows a rise in the export orders component. JPMorgan's Global Manufacturing Purchasing Managers' Index (PMI), nudged up to 51.2 in May from April's near two-year low of 51.0.
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.
