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ISM Mfg Index  
Released On 8/1/2017 10:00:00 AM For Jul, 2017
PriorConsensusConsensus RangeActual
ISM Mfg Index - Level57.8 56.2 55.0  to 57.5 56.3 

Highlights
Another month and another strong report from ISM's manufacturing sample where the July PMI came in 1 tenth above expectations at 56.3. New orders continue to post unusually strong growth, at 60.4 in July with backlog orders also unusually strong, at 55.0. Much of this strength appears to be coming from exports where the new orders index is at 57.5. Production is over 60 at 60.6 with inventories steady and delivery times slowing moderately -- all very positive indications. Input costs are even up in this report, at 62.0 for a 7 point monthly gain. If the nation's factory sector could only live up to this report, strong acceleration through the second half would be the call. However this report, unlike the PMI manufacturing sample released earlier this morning, has been running at unusually strong rates all year.

Recent History Of This Indicator
The ISM manufacturing index has been very strong this year, jumping back to the high 50s to a 57.8 reading in June that included unusual acceleration for new orders and strong growth in backlogs. Forecasters are calling for a little less strength in July, at a consensus 56.2.

Definition
The manufacturing composite index from the Institute For Supply Management is a diffusion index calculated from five of the eleven sub-components of a monthly survey of purchasing managers at roughly 300 manufacturing firms nationwide. The survey queries purchasing managers about the general direction of production, new orders, order backlogs, their own inventories, customer inventories, employment, supplier deliveries, exports, imports, and prices. The five components of the composite index are new orders, production, employment, supplier deliveries, and inventories (their own, not customer inventories). The five components are equally weighted. The questions are qualitative rather than quantitative; that is, they ask about the general direction rather than the specific level of activity. Each question is adjusted into a diffusion index which is calculated by adding the percentage of positive responses to one-half of the unchanged responses.  Why Investors Care
 
[Chart]
The ISM manufacturing index [formerly known as the NAPM Survey] is constructed so that any level at 50 or above signifies growth in the manufacturing sector. A level above 43 or so, but below 50, indicates that the U.S. economy is still growing even though the manufacturing sector is contracting. Any level below 43 indicates that the economy is in recession.
Data Source: Haver Analytics
 
 

2017 Release Schedule
Released On: 1/32/13/14/35/16/17/38/19/110/211/112/1
Release For: DecJanFebMarAprMayJunJulAugSepOctNov
 


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