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Economic Calendar Terms

ISM manufacturing index

ISM- Institute for Supply Management
P.O.Box 22160,
Tempe, AZ 85285
800-888-6276

The Manufacturing ISM Report On Business is based on data compiled from monthly replies to questions asked of purchasing and supply executives in over 400 industrial companies. Membership of the Business Survey Committee is diversified by Standard Industrial Classification (SIC) category, based on each industry contribution to Gross Domestic Product (GDP). Twenty industries from various U.S. geographical areas are represented on the committee. Survey responses reflect the change, if any, in the current month compared to the previous month. For each of the indicators measured (New Orders, Backlog of Orders, New Export Orders, Imports, Production, Supplier Deliveries,Inventories, Customers; Inventories, Employment, and Prices), this report shows the %'s reporting each response, the net difference between the number of responses in the positive economic direction (higher, better, and slower for Supplier Deliveries) and the negative economic direction (lower, worse, and faster for Supplier Deliveries), and the diffusion index. Responses are raw data and are never changed. The diffusion index includes the percent of positive responses plus one-half of those responding the same (considered positive). The PMI is a composite index based on the seasonally adjusted diffusion indices for five of the indicators with varying weights: New Orders-30%; Production-25%; Employment-20%; Supplier Deliveries-15%; and Inventories-10%.