2011 Economic Calendar
POWERED BY  econoday logo
U.S. & Intl Recaps   |   Event Definitions   |   Today's Calendar   |   

ISM Mfg Index  
Released On 4/1/2011 10:00:00 AM For Mar, 2011
PriorConsensusConsensus RangeActual
ISM Mfg Index - Level61.4 61.2 59.0  to 62.5 61.2 

Highlights
New orders, export orders and backlog orders slowed during March in an otherwise solid ISM manufacturing report. The composite headline index, which got a big lift from a slowing in supplier deliveries and from continued strength in production and employment, edged back only two tenths to a still very strong 61.2 that indicates month-to-month growth in overall activity at roughly the same level as February.

But the order data show significant slowing in the rate of monthly increase in a hint that manufacturing momentum, or at least that of ISM's sample, may have peaked in February. Input prices remain severely elevated but are not likely to be distorting the ISM's data which are based on volume, not dollar totals. On the impact of the Japanese situation, the ISM says it's still too early to see any impact which it suspects will ultimately be centered in technology and autos.

Consensus Outlook
The composite index from the ISM manufacturing survey in February advanced 0.6 point to 61.4 in. The latest is the highest level since the same reading for May 2004 and the peak ISM for the last expansion. February's improvement was led by the employment and production components. The employment index jumped 2.8 points to 64.5 while the production index also gained 2.8 points, reaching 66.3. Looking ahead, the new orders index only edged up 0.2 points but remained at a high level of 68.0.

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
 
 

2011 Release Schedule
Released On: 1/32/13/14/15/26/17/18/19/110/311/112/1
Release For: DecJanFebMarAprMayJunJulAugSepOctNov
 


powered by  [Econoday]