The index's exports component fell 22.2 points to 41.2 points, and the domestic demand component fell 1.9 points
The Bank Hapoalim and the Israeli Purchasing and Logistics Managers Association’s Purchasing Managers Index (PMI) for July 2011 fell by 2.9 percentage points to a level of 49.4 points, which was indicative of a contraction in manufacturing activity. Figures below 50 indicate contraction, while readings above 50 signal expansion.
The index's exports component fell 22.2 points to 41.2 points, and the domestic demand component fell 1.9 points.
The employment component stayed above the threshold, at 55.2 points; where it has been for two years. In a press release Bank Hapoalim noted that: "Global conditions are severely affecting continued industrial output expansion, and Israeli economic growth has slowed, which is affecting households and investments. Although these trends have not yet affected the labor market, it should be remembered that the labor market's response lags turnarounds in economic activity."
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.
