Israel Purchasing Managers Index up 0.5 points in March

Israel's purchasing managers' index (PMI), compiled by Bank Hapoalim and the Israel Purchasing and Logistics Managers Association released last Thursday show that the index edged up 0.5 points - 48.5 points -in March after falling 10.5 points in February.
 
Figures below 50 indicate contraction, while readings above 50 signal expansion.The level of the index for the second month in a row points to a contraction in activity,' the report said.
 
A sharp drop of 7.6 points occurred in the employment component although its level remains above 50.
 
The components for new orders, both domestic and for exports, posted increases this month but the component for domestic new orders continues to point a trend of contraction.'
 
Bank Hapoalim said in the press release: "The index indicates a second consecutive month of expectations of a slowdown in manufacturing activity. The drop in the index may reflect expectations of a slowdown in consumption, because of rising prices.
 
The sharp drop in the employment component in March is reasonable in view of the steady growth in the number of employees in preceding months."
 
 
                                              March '11             Feb '11        Change (index pts)
PMI                                           48.5                      48.0                     +0.5
Trend                                        51.5                      57.0                     -5.5
New orders - domestic              47.0                      41.3                    +5.7
New orders - exports                 56.6                      53.4                    +3.2
Production                                 50.6                      57.4                     -6.8
Employment                              52.5                      60.1                     -7.6