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The weakening dollar boosted industrial activity again in March as the Purchases Manager's Index (PMI), rose to 54% from 53. 4% the previous month marking 17 consecutive months of growth, research company Dun & Bradstreet Israel said Sunday.
"The main reason for the continued demand of Israeli exports is the drop of the dollar, which is making Israeli products "cheaper" compared with the US market and as such they turn out to be more attractive to buy," said economists at Dun & Bradstreet Israel. "Another factor adding to the expansion of demand in March was the Passover and holiday period."
PMI values above 50% reflect growth, and D&B economists said they expected productivity to continue to grow and the economy to expand throughout the next couple of months.
The index's export demand component grew by 2.1 percentage points to 57.8% in March from the 55.7% in February, while the domestic demand component fell by 2.4 percentage points to 51.2% compared with 53.6% in the previous month.
The employment component remained stable in March experiencing a moderate drop of 0.1 percentage point, leaving the index's component at 55.8%, down from 55.9% in February.