Israel's October PMI down 0.4 point to 37.6 pts

Bank Hapoalim: "This level indicates a sharp contraction in industrial activity
 
The Israel Purchasing Managers Index, (PMI) compiled by Bank Hapoalim and the Israel Purchasing and Logistics Managers Association, fell by 0.4 points in October 2012 to 37.6 points. The index again dipped below the 50-point level that separates manufacturing expansion from contraction.
 
Bank Hapoalim noted that "This level indicates a sharp contraction in industrial activity". The report added that "Most of the components of the index remained stable at low levels compared to the prior month. Both domestic demand and export demand point to a sharp contraction in activity."
 
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.
 
The PMI had jumped to 53.2 points in April 2012, crossing the 50-point threshold for the first time since October 2011, but the index then fell for four straight months to a three-year low in August 2012. It bounced 2.8 points in September 2012. The PMI index reached a high of 59.1 points in December 2010.