The ISM Manufacturing Index, also known as the purchasing managers' index (PMI), is a monthly indicator of U.S. economic activity based on a survey of purchasing managers at more than 300 manufacturing firms. The PMI is considered to be a key indicator of the state of the U.S economy, and it is closely watched by economists and financial markets around the world.The PMI surveys five different areas: new orders, production, employment, suppliers' deliveries and inventories. Each area is given a score between 1 and 100, with 50 indicating no change from the previous month. A reading above 50 indicates expansion in manufacturing activity, while a reading below 50 indicates contraction."In recent months, the ISM manufacturing index has been hovering just below 50%, indicating that there has been very little change in overall manufacturing activity levels across the country. However, some individual components of the index have shown more positive or negative movement during this time period."Looking ahead to future releases of the ISM Manufacturing Index, economists will be closely watching whether or not there are any sustained improvements in overall activity level. If manufacturers begin to see an increase in new orders and production, this could signal that economic conditions are beginning to improve. On the other hand, if activity levels continue to languish near current levels, this could indicate that further weakness may lie ahead for America's factories.
