The ISM Manufacturing Index is derived from a survey of purchasing managers and their outlook on overall conditions by looking at factors such as orders for durable goods, industrial production and hiring. It gives a general direction rather than the specific strength of the factory sector and manufacturing activity in the U.S. A reading above 50 is an indicator that …
The Market is Not Always Rational
When the market goes up, it is said, it takes the stairs; when the market goes down, it takes the elevator. Today’s market performance was a result of the President’s tweet indicating that he will add an additional 10% to $300 billion in imports from China. We quickly do the calculation and figure that adds up to $30 billion. (How …
ISM Non-Manufacturing Index
The ISM Non-Manufacturing Index helps determine the overall economic strength of the services sector. Components evaluated are employment, business activity, new orders, and supplier deliveries; which are then compiled into an index. The nonmanufacturing sector represents a much larger share of the overall U.S. economy when compared to the manufacturing sector, making up approximately 80%; the sector’s economic weight makes …