2010 Economic Calendar
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ISM Mfg Index  
Released On 12/1/2010 10:00:00 AM For Nov, 2010
PriorConsensusConsensus RangeActual
ISM Mfg Index - Level56.9 57.0 55.5  to 57.2 56.6 

Highlights
Manufacturing continues to grow at a healthy pace, according to the ISM report for November. New orders came in at 56.6, indicating solid month-to-month growth that's only slightly slower than October's very strong growth of 58.9. The pace of production slowed noticeably but, at 55.0, is still strong though less strong than the prior month's 62.7. ISM's sample is showing commitment to their businesses, continuing to add employees. The 57.5 index level for employment is very strong for this reading.

Other readings include a significant slowing in delivery times, strong evidence of activity in the supply chain. Backlogs continue to contract though inventories rose at a greater pace, in fact at 56.7 the inventories index indicates the strongest monthly build since the mid-80s. Input prices remain elevated, also evidence of activity.

The headline composite index of 56.6 shows no significant change from 56.9 in October. This report points to a rebound for factory data which proved soft in last week's durable goods report.

Recent History Of This Indicator
The composite index from the ISM manufacturing survey jumped 2.5 points to 56.9. New orders were a 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.

Definition
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
 
[Chart]
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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