Taking a back seat to the Federal Open Market Committee (FOMC) statement and Powell's presser but the Institute for Supply Management (ISM) Manufacturing Index, often simply referred to as the ISM Manufacturing PMI (Purchasing Managers' Index), is a closely watched indicator for economic activity in the U.S.
- The index is based on surveys of purchasing and supply executives nationwide.
- Respondents are asked about various factors, including new orders, production, employment, supplier deliveries, inventory levels, customer inventories, prices, backlog of orders, new export orders, and imports.
- A reading above 50 indicates that the manufacturing economy is generally expanding, while a reading below 50 suggests a contraction.
- The ISM Manufacturing Index is considered a leading economic indicator.
- In addition to the Manufacturing PMI, the ISM also releases a Non-Manufacturing PMI, which provides insights into the service sector of the U.S. economy. This is also an essential metric, especially considering that the service sector constitutes a substantial portion of the U.S. economy.
Its due at 10 am US Eastern time. The range of expectations for the ISM manufacturing index is 48.0 - 50.0 with the consensus, as you can see in the screenshot at 49:
The other high-priority data point is the ADP employment number at 8.15 am US Eastern time:
- 75K - 200K is the ranges of estimates for that.
