The Israeli Procurement Managers Index was stable at 51.7% in July 2009. This is the second consecutive month that the index has been above the 50% threshold denoting economic growth.
Both the export demand and domestic demand components of the index rose in July to reach a 16-month high. The jobs component also rose, and is nearing the 50% threshold. The industrial output component, fell back below the threshold.
Bank Hapoalim and the Israel Purchasing and Logistics Managers Association’s compile the monthly index. The bank said that two continuous months of improvement in the index implied further growth in industrial activity. The rise in the Procurement Managers Index joins other macroeconomic indicators in showing signs of growth, such as the rise in manufactured exports, increase in imports, the improvement in financial markets, and steady rise in the Israel Consumer Confidence Index.
The Israel Procurement Managers Index strongly correlates trends in corresponding indices in leading economies. In line with them, it indicates that the rise in demand is not accompanied by jobs growth. Bank Hapoalim said, "These figures indicate a possible emergence from the recession, but economic growth will probably be slow, which will leave the unemployment rate at a high level."
Published by Globes [online], Israel business news - www.globes-online.com - on August 16, 2009
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