2017 Economic Calendar
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ISM Mfg Index  
Released On 1/3/2017 10:00:00 AM For Dec, 2016
PriorConsensusConsensus RangeActual
ISM Mfg Index - Level53.2 53.8 53.0  to 54.7 54.7 

ISM's manufacturing sample had a very strong December. The composite index hits Econoday's high estimate at 54.7, up a sharp 1.5 points from November for the best score in 2 years.

New orders are the clear highlight of the report, at 60.2 for another 2 year high and up 7.2 points which is the sharpest monthly jump of the entire cycle. The good news continues with production up 4.3 points to 60.3, employment up 8 tenths to 53.1, and export orders at 56.0 which is a 2-1/2 year high. The strength, like it was in the manufacturing PMI posted earlier this morning, is being reflected in prices with input costs up 11.0 points to 65.5 which is a 5-1/2 year high.

The composite would have been even higher if not for supplier deliveries where times improved in the month (shorter delivery times are a negative for the composite). This is an outstanding start to the 2017 economic calendar and confirms the advance signals from regional reports that were pointing to year-end strength for a factory sector that struggled through most of last year.

Consensus Outlook
The ISM manufacturing index has been moving to 1-year highs, to in 53.2 November with forecasters seeing December coming in at 53.8. New orders, at 53.0 in November, have been running in line with the composite index and pointing to factory strength ahead for the first quarter. Production has also been positive as has employment which had lagged noticeably through most of the year.

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

2017 Release Schedule
Released On: 1/32/13/14/35/16/17/38/19/110/211/112/1
Release For: DecJanFebMarAprMayJunJulAugSepOctNov

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