The Israel Purchasing Managers Index, compiled by Bank Hapoalim and the Israel Purchasing and Logistics Managers Association, fell by 3.2 points in June 2012 to 47.8 points. The index again dipped below the 50-point dividing line economic expansion and contraction, after staying above the line for two months. The index's export demand, jobs, and prices for raw materials components all fell in June to below 50 points. The domestic demand component was below the 50-point line for the seventh consecutive month.
The JPMorgan Global Purchasing Managers Index fell to a three-year low of 48.9 points in June, from 50.6 points in May. The eurozone was again the main weak point, but the US Purchasing Managers Index fell by 3.8 points to 49.7 points, after indicating economic expansion for 34 months. The UK Purchasing Managers Index was below the 50-point dividing line for the second straight month, as the country struggles with a recession, although the index was slightly higher in June than in May.
Bank Hapoalim said, "The Purchasing Managers Index for June fell below 50 points. All components of the index fell in June, except for supply times. The index has been fluctuating around the 50-point level, reflecting a slowly growing economy. The domestic demand component has shown contraction for a long time, a figure which is in line with other indicators on consumption, such as the Trade and Services Proceeds Index, which has not risen for a year.
"The export demand component fell by 6.4 points in June to 47.9 points. Foreign trade figures published this month also show a sharp drop in industrial exports. We believe that the global situation is affecting the domestic economy, and the economy's growth rate continued to slow in the second quarter of 2012."
Published by Globes [online], Israel business news - www.globes-online.com - on July 16, 2012
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