What is the Institute for Supply Management (ISM)?
The Institute for Supply Management (ISM) is a professional association for individuals and companies with an interest in supply management.
How Does the Institute for Supply Management (ISM) Work?
The ISM publishes two important monthly surveys, the Manufacturing ISM Report on Business and the Non-Manufacturing ISM Report on Business.
Both the Manufacturing and Non-Manufacturing ISM Reports include surveys of purchasing and supply executives around the country on topics such as the number of new orders they're placing, production levels, hiring/employment, supplier deliveries, inventories, prices, order backlogs, exports and imports.
The reports also include direct quotations from executives on the state of their businesses. For example, in June 2012, respondents were saying:
"General state of business this month is flat, with no changes." (Construction industry)
"Business is still growing, but there has been a definite slowing in growth." (Wholesale Trade)
"Business is still strong, with some nagging question whether it will be sustained." (Machinery)
Why Does the Institute for Supply Management (ISM) Matter?
The ISM releases its reports every month. The results of its survey can be immediately felt throughout the markets.
The most closely-watch component of the monthly reports is the Purchasing Managers Index (PMI). The PMI is widely regarded as an important and accurate predictor of the broad economy. A number above 50 suggests that the economy is expanding, while a reading below 50 suggests it is contracting.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
Back in the late 1990s, little old ladies became stock-picking experts. The local mailman was just as comfortable recommending Lucent and AOL as he was talking about the weekend forecast. ...Read More →
When a person asks you, "How did the market do today?" it's safe to assume that he or she is looking for a quote on the most...Read More →