The ISM Services PMI (formerly the ISM Non-Manufacturing Index) provides a detailed look at the economy from a non-manufacturing standpoint.
ISM stands for Institute of Supply Management, which is the non-profit organization responsible for measuring the Purchasing Managers’ Index or PMI for both the manufacturing and non-manufacturing industries in the United States.
What is the ISM Services Survey?
The Services PMI® or just known as the ISM Services report or just the “services report is based on data compiled by purchasing managers nationwide.
This report like the ISM Manufacturing Survey is based on surveys of purchasing managers, with the difference being that the purchasing managers work in non-manufacturing industries in the United States.
The non-manufacturing PMI takes into account the business conditions in the services sector, such as employment, production, new orders, prices, and inventories, to determine whether the industry expanded or contracted during the month.
How do you read it?
A reading above 50.0 indicates economic expansion while a reading below 50.0 reflects a contraction.
Since the non-manufacturing PMI shows how the services sector fared during a period and helps to understand the general economic conditions within the U.S.
It also provides data regarding factors affecting growth and inflation.
When is it released?
The Services PMI® report is released on the third business day of each month at 10:00 am ET.