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ISM Manufacturing Composite Index

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Definition of 'ISM Manufacturing Composite Index'

This is a diffusion index created from five of the eleven components of the monthly ISM Report On Business.
  • PMI
  • New Orders
  • Production
  • Employment
  • Supplier Deliveries
  • Inventories
  • Customers' Inventories
  • Prices
  • Backlog of Orders
  • Exports
  • Imports

This index is release monthly on the first business day of the month relating to data for the previous month. For example, January's data will be release on the first business day of February.

Levels above 50% are considered to be indications of expansion while below 50% shows a contraction in the sector or economy. The economy will not swing from one level to the other but rather move gradual in a trending direction. As such the change on the previous month is watched more than the level itself.

Manufacturing ISM Report On Business data is seasonally adjusted for New Orders, Production, Employment, Supplier Deliveries and Inventories.

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