Israel: PMI drops in September
The Purchasing Managers’ Index (PMI)—produced by Bank Hapoalim together with the Israeli Purchasing & Logistics Mangers Association (IPLMA)—fell to 50.0 points in September from 50.4 points in August. This suggests that business conditions in the manufacturing industry did not improve nor deteriorate in September, therefore representing the first time in 10 months that conditions have not improved.
September’s weaker print reflected a decrease in output, which contrasts with the increase recorded in August. This was partly due to fewer working days thanks to the Tishrei holidays. Lower output in September also came despite an increase in demand both nationally and internationally for Israeli manufactured goods. Possibly holding firms back from ramping up the production lines in September were higher prices for raw materials, lower headcounts and lengthier supplier delivery times. Inventory levels of both finished products and raw materials increased in September.