Israel: Manufacturing PMI records worst reading since March in August
September 20, 2022
The Bank Hapoalim/IPLMA Manufacturing Purchasing Managers’ Index (PMI) came in at 49.5 in August, down from July's 57.6. August's result marked the weakest reading since March. As such, the index dropped below the 50.0 no-change mark, signaling a deterioration in manufacturing sector operating conditions from the previous month.
The headline print reflected weaker increases in output, purchasing activity, local orders and employment. Moreover, exports contracted amid softer momentum abroad. Until August, Israel’s manufacturing PMI readings had compared favorably to those of other developed markets, likely aided by relatively mild energy prices in Israel. That said, given the past volatility in the Index it is too early to tell whether August’s downturn marks the start of an enduring trend in the manufacturing sector.
Author: Oliver Reynolds, Economist