The Israel Purchasing Managers Index compiled by Bank Hapoalim and the Israel Purchasing and Logistics Managers Association, points to economic expansion for the first time in nine months. The index rose by 4.3 points in February 2013 to 53.6 points, the first time that it is above the 50-point dividing line separating economic expansion from contraction since May 2012.
The Israel Purchasing Managers Index has been above the global index for a long time.
Bank Hapoalim said that output, purchases of raw materials and of inventory components boosted the index. The export demand component was above the 50-point threshold for the second month, but domestic demand stayed below the threshold.
"There are signs of improvement in indicators of economic activity, mainly due to improvements in global data," said Bank Hapoalim chief economist and strategist Prof. Leo Leiderman.
Bank Hapoalim added, "The rise in the Purchasing Managers Index over the past four months is a positive indication, especially when we see that other data have begun to improve. Foreign trade data for February, published by the Central Bureau of Statistics, show growth in industrial exports. Other indicators also show growth in private consumption. Global conditions have also improved slightly, which seems to have a positive influence on export orders."
Published by Globes [online], Israel business news - www.globes-online.com - on March 13, 2013
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