Forex glossary
ISM Manufacturing PMI (United States)
A U.S. manufacturing survey index combining five diffusion-index components with equal weights. A raw Production index is only one component; survey directions do not measure the percentage change in total output.
Illustrative example
How does it work in practice?
Assume five finalized ISM Manufacturing components read 55, 60, 50, 45 and 50 after applicable adjustments. Their equally weighted average is 52 points; it does not represent a 52% rise in output.
A case to work through
The column name changes the meaning
A fictional report shows Supplier Deliveries at 55 and Production at 48.
- For Supplier Deliveries, check that above 50 indicates slower deliveries.
- Do not apply that interpretation to Production.
What follows? Describe the components separately.
Example boundary: Components do not measure percentage output-volume growth.
A useful distinction
ISM Manufacturing PMI (United States) / Purchasing Managers' Index (PMI)
ISM and S&P PMI use distinct constructions and component weights.
Check your understanding
Read the component name before interpreting its threshold.
Show the answer and explanation
Slower deliveries
That is this ISM component's interpretation.
Reading economic surveys
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Read the fuller explanation
Related terms
Sources and documentation
- ISM Manufacturing PMI Report – August – methodology
Specifies Supplier Deliveries' distinct interpretation and five equally weighted PMI components.
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The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.