Forex Dictionary

ISM Manufacturing PMI

ISM Manufacturing PMI

Measures Level of a diffusion index based on surveyed purchasing managers in the manufacturing industry; Usual Effect Actual > Forecast = Good for currency; Frequency Released monthly, on the first business day after the month ends; Next Release Oct 1, 2008 FF Notes Above 50.0 indicates industry expansion, below indicates contraction; Why Traders Care It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy; Derived Via Survey of about 400 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories; Also Called Manufacturing ISM Report On Business; Acronyms The Institute for Supply Management (ISM), Purchasing Managers' Index (PMI);