ISM Non-Manufacturing Index

AAA

DEFINITION of 'ISM Non-Manufacturing Index'

An index based on surveys of more than 400 non-manufacturing firms' purchasing and supply executives, within 60 sectors across the nation, by the Institute of Supply Management (ISM). The ISM Non-Manufacturing Index tracks economic data, like the ISM Non-Manufacturing Business Activity Index. A composite diffusion index is created based on the data from these surveys, that monitors economic conditions of the nation.

INVESTOPEDIA EXPLAINS 'ISM Non-Manufacturing Index'

By monitoring the ISM Non-Manufacturing Index, investors are able to better understand national economic conditions. When this index is increasing, investors can assume that the stock markets should increase because of higher corporate profits. The opposite can be thought of the bond markets, which may decrease as the ISM Non-Manufacturing Index increases because of sensitivity to potential inflation.

The ISM Non-Manufacturing Index gets more attention than its manufacturing counterpart, partially due to its seasonally adjusted figures for several of its components.

RELATED TERMS
  1. Flash Manufacturing PMI

    An estimate of the Manufacturing Purchasing Managers' Index (PMI) ...
  2. ISM Manufacturing Index

    An index based on surveys of more than 300 manufacturing firms ...
  3. Same-Store Sales

    A statistic used in retail industry analysis that compares the ...
  4. Retail Prices Index - RPI

    One of the two main measures of consumer inflation produced by ...
  5. Economic Growth Rate

    A measure of economic growth from one period to another in percentage ...
  6. Economic Growth

    An increase in the capacity of an economy to produce goods and ...
Related Articles
  1. Economic Indicators That Do-It-Yourself ...
    Investing Basics

    Economic Indicators That Do-It-Yourself ...

  2. Explaining The World Through Macroeconomic ...
    Options & Futures

    Explaining The World Through Macroeconomic ...

  3. Introduction To Stationary And Non-Stationary ...
    Active Trading

    Introduction To Stationary And Non-Stationary ...

  4. Economic Indicators To Know
    Retirement

    Economic Indicators To Know

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center