What is the ISM Non-Manufacturing Index?
ISM Non-Manufacturing Index is based on survey responses from purchasing and supply executives of more than 400 non-manufacturing or service firms. This index highlights the economic trends in the service sector; measuring employment, prices, and inventory levels. It is a critical tool for supply management and purchasing professionals as they manage their business.
Why is the ISM Non-Manufacturing Index valuable?
Because of the industries that the Non-Manufacturing Index includes like, Accommodation & Food Services, Health Care & Social Assistance, Real Estate, Rental, and Leasing, and Utilities, noted trends are often very stable and can go on for months. This makes the index a great resource for long-term economic forecasts. The different components of the index can provide valuable insight into current economic health as it analyzes both consumer and business demand for a variety of services. Additionally, it can provide clarity about factors impacting total outputs, growth, and inflation.
What should you do?
Understanding the business activity within the service sector can provide clarity into long term economic trends and insight on the current health of the economy. Majestic’s CORE Report follows the ISM Non-Manufacturing Index; along with other indicators every week to see where the market stands.