The Israel Purchasing Managers Index, compiled by Bank Hapoalim and the Israel Purchasing and Logistics Managers Association, fell by a sharp 7.4 points in March 2010 to 55.7% from 63.3% in February. March was the tenth consecutive month that the index was above 50%, the dividing line between economic expansion and contraction.
The drop in March in the Purchasing Managers Index came after it remained fairly flat for three months, but it is now 13 points below its high point reached in November 2009. Nonetheless, the index continues to stay buoyant, indicating that the economy is growing rapidly, as before the economic crisis. Most of the index's items are still indicating expectations of expansion.
The Global Purchasing Managers Index, compiled by JP Morgan rose by 1.3 points in March to 56.7%. The index points to expansion for the ninth consecutive month, and is at its highest level since May 2004.
Bank Hapoalim said that the Israeli index, at over 50%, indicates economic expansion in manufacturing activity, but that the sharp drop in March suggests that the growth rate is slowing.
Published by Globes [online], Israel business news - www.globes-online.com - on April 15, 2010
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