Israel: Manufacturing PMI bounces back in September from August’s blip
The Purchasing Managers’ Index (PMI), produced by Bank Hapoalim and the Israeli Purchasing & Logistics Managers Association (IPLMA), rose to 50.3 in September from 44.3 in August, moving back above the neutral 50-mark separating expansion from contraction in the manufacturing sector. August’s poor reading appears to have been a blip in the data due to the summer vacation period distorting figures.
The rise in the headline figure was driven by stronger domestic demand and a milder contraction in exports. However, firms continued to cut back on staff, and economists at Bank Hapoalim highlighted the U.S.-China trade war as a factor continuing to keep a lid on export orders.