February's PMI indicates economic contraction

The index fell below the 50% dividing line between economic expansion and contraction for the first time in six months
 
Israel’s PMI (Purchasing Managers Index), compiled by Bank Hapoalim and the Israel Purchasing and Logistics Managers Association, showed a “sharp” drop in February and declined to a level that signals contraction, following six months of expansion.
 
The Index fell sharply by 10.5 points in February 2011 to 48 points. The index fell below the 50% dividing line between economic expansion and contraction for the first time in six months.
 
There was an especially sharp fall of 16 points in the domestic demand component of the index, which fell to 41.3 points. The jobs component was stable and remained high. The survey was conducted in February, before the Japan earthquake and tsunami.
 
 
The drop contrasted with the global trend, which rose to its second highest ever, according to the report, which cited a global measure published by JPMorgan Chase & Co. The JPMorgan Global PMI (Purchasing Managers Index) rose 0.6 points to 57.2 points in February, the second highest level ever recorded.