Market importance: High importance.
Meaning: The first monthly economic report focused on manufacturing, the first report on the service economy.
Release time: The first and third business days after the end of the corresponding month, 10 a.m. Eastern Time.
Coverage period: The most recent month.
Revision situation: No monthly revision, but a quarterly adjustment in January.
The Institute for Supply Management index is an important data released by the Institute for Supply Management, which reflects the prosperity of the U.S. economy and has a very important impact on the dollar trend. One of its important components is the Purchasing Managers’ Index.
The report’s publisher, the Institute for Supply Management (the Institute for Supply Management, ISM) is the world’s largest and most authoritative professional organization in the fields of purchasing management, supply management, logistics management, etc.
The organization was founded in 1915, formerly known as the American Purchasing Management Association, currently has more than 45,000 members and 179 chapters, and is one of the most respected professional groups in the United States. ISM index is divided into the manufacturing index and the non-manufacturing index.
The Institute for Supply Management manufacturing index consists of a series of sub-indices, among which the Purchasing Managers’ Index is the most representative. The index is a "barometer" that reflects the comprehensive development of manufacturing in terms of production, orders, prices, employees, delivery, etc. It usually takes 50 as the critical point, above 50 is considered to be manufacturing in an expansion state, and below 50 means that manufacturing is shrinking, affecting the pace of economic growth.
The Institute for Supply Management's non-manufacturing index reflects the prosperity of the U.S. non-manufacturing business activity. When its value is continuously above the level of 50, it indicates that non-manufacturing activity is expanding, prices are rising, and often implies that the overall economy is in an expansion state.
On the contrary, when its value is continuously below the level of 50, it often implies that the overall economy is in a contraction state. As the proportion of the tertiary industry in the U.S. economy gradually rises to a critical level, the importance of this index is gradually increasing.