2010 Economic Calendar
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ISM Mfg Index  
Released On 11/1/2010 10:00:00 AM For Oct, 2010
PriorConsensusConsensus RangeActual
ISM Mfg Index - Level54.4 54.5 53.6  to 55.5 56.9 

The manufacturing sector surged in October led by a burst in new orders and supported by strong employment gains. The composite headline index jumped nearly 2-1/2 points to 56.9. New Orders are the standout, up nearly eight points to 58.9 to indicate strong month-to-month growth for the best reading since May. Employment rose more than one point to 57.7 indicating no let up in hiring.

The demand for labor reflects strong production needs. Production at 62.7 is up more than six points and, like new orders, is at its best level since May. Production needs made for a slowing in inventory accumulation. Delivery times, which surprisingly improved, do not confirm strength elsewhere.

Other readings include special strength for exports, a surprise slowing in imports, and steady pressures on input prices. The stock market is moving higher following the results which re-establish the manufacturing sector's leadership.

Consensus Outlook
The composite index from the ISM manufacturing survey posted at 54.4 for September, still notably above breakeven of 50 but down from 56.7 in August. For the latest month, strength was in production, employment, and inventories. But there may be some softening in October as the new orders index decelerated to 51.1 from 53.1 in August. This is substantially below a recent high of 65.7 seen as recently as May.

The manufacturing composite index from the Institute For Supply Management is a diffusion index calculated from five of the eleven sub-components of a monthly survey of purchasing managers at roughly 300 manufacturing firms nationwide. The survey queries purchasing managers about the general direction of production, new orders, order backlogs, their own inventories, customer inventories, employment, supplier deliveries, exports, imports, and prices. The five components of the composite index are new orders, production, employment, supplier deliveries, and inventories (their own, not customer inventories). The five components are equally weighted. The questions are qualitative rather than quantitative; that is, they ask about the general direction rather than the specific level of activity. Each question is adjusted into a diffusion index which is calculated by adding the percentage of positive responses to one-half of the unchanged responses.  Why Investors Care
The ISM manufacturing index (formerly known as the NAPM Survey) is constructed so that any level at 50 or above signifies growth in the manufacturing sector. A level above 43 or so, but below 50, indicates that the U.S. economy is still growing even though the manufacturing sector is contracting. Any level below 43 indicates that the economy is in recession.
Data Source: Haver Analytics

2010 Release Schedule
Released On: 1/42/13/14/15/36/17/18/29/110/111/112/1
Release For: DecJanFebMarAprMayJunJulAugSepOctNov

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