ISM manufacturing index,
Definition of ISM manufacturing index:
An index that is put out by the Institute of Supply Management showing economic information such as employment and new orders and helping investors in better understanding overall economic conditions.
The ISM Manufacturing Index monitors changes in production levels from month to month and is at the core of the ISM Manufacturing Report. The ISM Manufacturing Report is released on the first business day of each month and is thus one of the earliest indicators of economic activity that investors and business people get regularly. (A separate ISM Non-Manufacturing Report is released a few days later.) The institute also releases a Semi-Annual Economic Forecast in May and December.
ISM Manufacturing Index, which used to be called Purchasing Manager's Index (PMI), measures manufacturing activity based on a monthly survey, conducted by Institute for Supply Management (ISM), of purchasing managers at more than 300 manufacturing firms.
How to use ISM manufacturing index in a sentence?
- An index of more than 50 indicates expansion of the manufacturing segment of the economy in comparison with the previous month while a reading of 50 indicates no change and a reading below 50 suggests a contraction of the manufacturing sector.
- The monthly announcement of the ISM Manufacturing Index can greatly influence investor and business confidence as purchasing managers are in the best position to assess the ebb and flow of business conditions.
- ISM Manufacturing Index, which used to be called PMI, measures manufacturing activity based on a monthly survey, conducted by ISM, of purchasing managers at more than 300 manufacturing firms.
Meaning of ISM manufacturing index & ISM manufacturing index Definition