ISM Index (Institute of Supply Management's index, former NAPM — National Association of Purchasing Managers) is the index of business activity.
ISM figures above 50 are usually considered as an indicator of expansion, while values below 50 indicate contraction. Typically, when ISM approaches 60 investors begin to worry about possible economic overheating, inflation increase and the corresponding measures (raising rates) by the Federal Reserve Bank. Figures below 40 entail talks about recession.
ISM is released just before unemployment data are announced, and is often used to refine data by Bureau of Labor Statistics.
- Release Frequency: monthly.
- Release Schedule: 10:00 EST, the first business day of the month.
- Source: Institute for Supply Management.
[USD - ISM Manufacturing PMI]
= Level of a diffusion index based on surveyed purchasing managers in
the manufacturing industry. 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.
EURUSD M5: 20 pips price movement by USD - ISM Manufacturing PMI news event
USDJPY M5: 32 pips by USD - ISM Manufacturing PMI news event
