what is ism manufacturing

The ISM Manufacturing Index, also known as the Purchasing Managers Index (PMI), is a monthly indicator of U.S. economic activity based on a survey of purchasing managers at more than 300 manufacturing firms. The index is a composite index that gives equal weighting to new orders, production, employment, supplier deliveries, and inventories, and each factor is seasonally adjusted. The ISM Manufacturing Index is published at the beginning of each month by the Institute for Supply Management (ISM), a not-for-profit organization professional supply management organization based in Arizona, USA. The ISM Manufacturing Index is considered a key indicator of the state of the U.S. economy and is a forward-looking economic indicator because of how far ahead purchasing decisions need to be made for future manufacturing needs. The monthly announcement of the ISM Manufacturing Index can greatly influence investor and business confidence. The ISM Report On Business, released by ISM, is a closely followed monthly manufacturing report that provides guidance to supply management professionals, economists, analysts, and government and business leaders.