The purchasing managers' index climbed to 50.6% in April compared with 49.6% in March, report Dun & Bradstreet Israel together with the Purchasing Managers' Organization.
However, D&B say that despite the upswing into positive territory, the components of domestic demand and demand for exports remained below 50%, indicating that the economic situation has not improved.
Most of the increase was attributed to production components, prices, and employment, which all increased in April compared with the previous month. The employment item increased by 4.7% from March. The prices item is being supported mainly by the weakening of the shekel against the dollar.
All other major indicators were lower than in the previous month. Many are still dipping below 50%.
D&B sees room for optimism, pointing out that the indexes for the United States and Britain sustained a level above 50% in April. While growth in these key economies will benefit Israel, the boost will only be in the longer term, the analysts noted.
When the purchasing managers' index crosses above the key 50% mark, it indicates economic growth. When it falls below that point, it indicates slowdown.