Israel: Manufacturing PMI recovers in June but continues to signal worsening operating conditions
June 17, 2020
The Purchasing Managers’ Index (PMI), produced by Bank Hapoalim and the Israeli Purchasing & Logistics Managers Association (IPLMA), increased from 38.5 in May to 45.0 in June, but remained below the neutral 50-mark signaling worsening operating conditions. All subsectors recorded improvements compared to May, with output returning to expansionary territory. According to Bank Hapoalim economists: “The opening of the economy in Israel and around the world is leading to an increase in PMI readings. At the same time, the comparison is to the low period of the quarantine months, and industrial exports have not returned to their pre-coronavirus level.”
Manufacturing activity should gradually recover going forward as lockdowns are eased, although tepid external demand will likely keep a lid on momentum.
Author: Oliver Reynolds, Economist