Many the components of the index fell sharply: the domestic demand index fell by 10.6 points and the jobs index fell for the second consecutive month reaching 40.1%. The inventory of goods index rose, implying a drop in demand
The Israel Purchasing Managers Index, (IPM) compiled by Bank Hapoalim and the Israel Purchasing and Logistics Managers Association, fell by 4.1 points to 44.3% in September 2011, well below the 50% dividing line between economic expansion and contraction.The IPM reflects shrinking industrial activity.
Bank Hapoalim economists: The drop in the PMI during the month was considerable and particularly notable in the employment and the domestic new-orders components. In addition, finished good inventories increased during the month, a development that could also be indicative of a drop in demand. Growth in the economy is slow, and this is especially apparent in manufacturing.
Many the components of the index fell sharply. The domestic demand index fell by 10.6 points and the jobs index fell for the second consecutive month reaching 40.1%. The inventory of goods index rose, implying a drop in demand.
Israel's growth rate has been slowing, especially in manufacturing. The Central Bureau of Statistics has reported slowing export growth for five months, consistent with the drop in the Purchasing Managers Index's export index.
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.
