• What it is: A monthly survey of 300 purchasing managers,
representing 20 different industries.
• Who puts it out: Institute for Supply Management (www.ism.ws).
• When it’s released: 10 a.m. ET on the first business day of the month after the actual month.
• What it means: The index is designed to fluctuate around 50, with readings above 50 indicating a growing economy. Too-high numbers or extended periods of growth might indicate the economy is about to overheat. Using ISM index, a business cycle trough could be defined as a reading at or above 44 a few months in a row.
The markets are very sensitive to unexpected discrepancies in this number, especially if that also coincides with a turning point in the index.
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