Israel's Purchasing Managers Index (PMI) published by Bank Hapoalim and the Israeli Purchasing and Logistics Managers Association rose by 3.4 points to a level of 51.0, the level marking the distinction between contraction and expansion in manufacturing activity.
The improvement in the index derived mainly from an increase in local demand and the employment components, which now show expansion.
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.
