On this page, you will find our latest updates on the ISM Manufacturing PMI.
What is the ISM Manufacturing PMI? The ISM Manufacturing PMI is one of the most looked-after reports for the US dollar. It is a survey on business managers in the manufacturing industry conducted by the Institute of Supply Management or ISM. This is an important report for forex traders because manufacturing makes up a significant chunk of the US economy which approximately contributed over $2 trillion to the GDP in 2018. Therefore, strong manufacturing industry is seen to reflect economic growth too.
The ISM Report is considered to be a leading economic report which means that it is often used to predict economic growth. Executives are sensitive to business conditions and provide significant insight into the manufacturing industry. This then allows them to paint a fairly accurate picture of how well the sector is doing.
400 business managers are surveyed regarding employment, prices, inventories, production, and new orders. The ISM Manufacturing PMI is reported as a diffusion index wherein the 50.0 level is considered as the baseline. A figure higher than 50.0 means that more executives feel optimistic about business conditions and that activity in the sector is picking up. On the other hand, a number of fewer than 50.0 hints that there is a contraction in business activity.
The report is released on the first business day of every month. Lately, the employment section of the report has been attracting more attention from forex traders especially when it is released ahead of the NFP report. Many use it to predict the government data on employment which is scheduled every first Friday of the month.
The US ISM manufacturing report for February just crossed the newswires, and the outcome was 50.1 vs. the 50.5 anticipated, and lower than the 50.9 prior. The subcomponents show that production, new orders, and employment is contracting. Yet the latest reading of the ISM report, suggests that the US GDP [...]
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The US Dollar softened slightly versus the Euro (EURUSD) in the first sixty seconds of the release of the latest US Markit Manufacturing and Services report for January. The reason for the softer dollar was the Markit Manufacturing PMI declining to 51.7 vs. the 52.5 projected, and 52.4 prior. On [...]
At the time of writing, the DAX index was up by 0.55% on the day, as stock markets worldwide were trading higher. The move itself is not enough to trigger the resumption of the bullish trend in the DAX index, but it could be the start of it. In the [...]
Final US Markit Services PMI rose to 52.8 vs. the 52.2 projected and previous figure. The US Dollar strengthened and spiked by 4.7 pips vs. the Euro five minutes following the release. Gold prices spiked lower by 1.6 dollars, while the Dow Jones spiked higher by 23 points. The latest [...]
The Euro spiked higher vs. the Dollar (EURUSD), and reached a high of 1.1116 seconds after the US ISM Non-Manufacturing PMI for November slipped to 53.9 from 54.7 prior, and lower than the 54.5 projected. The soft reading shows that the largest sector of the US economy, the US Service [...]