For the first time in 39 months, the prices for raw materials item fell below 50% in September. The Fall indicates economic slowdown
Israeli Procurement Managers Index has fallen to a five-year low providing strong indications that business activities in general and industrial output in particular are facing a sharp contraction during the fourth quarter of 2008.
Bank Hapoalim, co-publisher of the index, noted that in September 2008 the Procurement Managers Index fell to 42.2% from 46.9% in August. (50% is the threshold between economic expansion and contraction.(
The bank added that the index has been falling for six consecutive months. The bank noted that both the domestic demand and export items of the Procurement Managers Index are falling.
Both the industrial output and employment items fell in September after rising in August.
For the first time in 39 months, the prices for raw materials item fell below 50% in September thanks to falling global prices for commodities, especially fuel.
